AN ACT
to make changes to improve K-3 literacy; provide literacy volunteer leave time;
assign school performance grades; MAXIMIZE INSTRUCTIONAL TIME; adjust school
calendar; fund five additional INSTRUCTIONAL days within the EXISTING school
calendar; establish an NC teacher corps; strengthen teacher licensure
requirements; PROVIDE PROOF OF STATE-FUNDED LIABILITY INSURANCE; establish
plans for pay FOR EXCELLENCE; clarify nc Pre-K program Eligibility and add
slots; repeal prohibition on teacher prepayment; Provide a tax deduction for
educational supplies; Establish Teacher Contracts; AND eliminate public
FINANCING for the office of superintendent of public instruction.

The General Assembly of North Carolina enacts:

PART I. IMPROVE K-3 LITERACY

SECTION 1.(a) G.S. 115C-81.2 is
repealed.

SECTION 1.(b) Article 8 of Chapter 115C of
the General Statutes is amended by adding a new Part to read:

"Part 1A. North Carolina Read to Achieve Program.

"§ 115C-83.1A.
State goal.

The goal of the State is to ensure that every student read
at or above grade level by the end of third grade and continue to progress in
reading proficiency so that he or she can read, comprehend, integrate, and
apply complex texts needed for secondary education and career success.

"§ 115C-83.1B.
Purposes.

(a)The
purposes of this Part are to ensure that (i) difficulty with reading
development is identified as early as possible; (ii) students receive
appropriate instructional and support services to address difficulty with
reading development and to remediate reading deficiencies; and (iii) each
student and his or her parent or guardian be continuously informed of the
student's academic needs and progress.

(b)In
addition to the purposes listed in subsection (a) of this section, the purpose
of this Part is to determine that progression from one grade to another be
based, in part, upon proficiency in reading.

"§ 115C-83.1C.
Definitions.

The following definitions apply in this Part:

(1)"Accelerated
reading class" means a class where focused instructional supports and
services are provided to increase a student's reading level at least two grades
in one school year.

(2)"Alternative
assessment" means a valid and reliable standardized assessment of reading
comprehension, approved by the State Board of Education, that is not the same
test as the State approved standardized test of reading comprehension
administered to third grade students.

(3)"Instructional
supports and services" mean intentional strategies used with a majority of
students to facilitate reading development and remediate emerging difficulty
with reading development. Instructional supports and services include, but are
not limited to, small group instruction, reduced teacher-student ratios,
frequent progress monitoring, and extended learning time.

(4)"Difficulty
with reading development" means not demonstrating appropriate
developmental abilities in any of the major reading areas, including, but not
limited to, oral language, phonological or phonemic awareness, vocabulary,
fluency, or comprehension, according to observation-based, diagnostic, or
formative assessments.

(5)"Reading
interventions" mean evidence-based strategies frequently used to remediate
reading deficiencies and include, but are not limited to, individual instruction,
tutoring, or mentoring that target specific reading skills and abilities.

(6)"Reading
proficiency" means reading at or above the third grade level by the end of
a student's third grade year, demonstrated by the results of the State-approved
standardized test of reading comprehension administered to third grade
students.

(7)"Reading
deficiency" means not reading at the third grade level by the end of the
student's third grade year, demonstrated by the results of the State-approved standardized
test of reading comprehension administered to third grade students.

(8)"Student
reading portfolio" means a compilation of independently produced student
work selected by the student's teacher, and signed by the teacher and
principal, as an accurate picture of the student's reading ability. The student
reading portfolio shall include an organized collection of evidence of the
student's mastery of the State's reading standards that are assessed by the
State-approved standardized test of reading comprehension administered to third
grade students. For each benchmark, there shall be three examples of student
work demonstrating mastery by a grade of seventy percent (70%) or above.

(9)"Summer
reading camp" means an additional educational program outside of the
instructional calendar provided by the local school administrative unit to any
student who does not demonstrate reading proficiency. Parents or guardians of
the student not demonstrating reading proficiency shall make the final decision
regarding the student's summer camp attendance. Summer camps shall (i) be six
to eight weeks long, four or five days per week; (ii) include at least three
hours of instructional time per day; (iii) be taught by compensated, licensed
teachers selected based on demonstrated student outcomes in reading
proficiency; and (iv) allow volunteer mentors to read with students.

(10)"Transitional
third and fourth class combination" means a classroom specifically
designed to produce learning gains sufficient to meet fourth grade performance
standards while continuing to remediate areas of reading deficiency.

"§ 115C-83.1D.
Comprehensive plan for reading achievement.

(a)The
State Board of Education shall develop, implement, and continuously evaluate a
comprehensive plan to improve reading achievement in the public schools. The
plan shall be based on reading instructional practices with strong evidence of
effectiveness in current empirical research in reading development. The plan shall
be developed with the active involvement of teachers, college and university
educators, parents and guardians of students, and other interested parties. The
plan shall, when appropriate to reflect research, include revision of the
standard course of study or other curricular standards, revision of teacher
licensure and renewal standards, and revision of teacher education program
standards.

(b)The
State Board of Education shall report biennially to the Joint Legislative
Education Oversight Committee by October 1 of each even-numbered year on the
implementation, evaluation, and revisions to the comprehensive plan for reading
achievement and shall include recommendations for legislative changes to enable
implementation of current empirical research in reading development.

(a)The
State Board of Education shall ensure that every student entering kindergarten
shall be administered a developmental screening of early language, literacy,
and math skills within 30 days of enrollment.

(b)The
State Board of Education shall ensure that every student entering kindergarten
shall complete a kindergarten entry assessment within 60 days of enrollment.

(c)The
developmental screening instrument may be composed of subsections of the
kindergarten entry assessment.

(d)The
kindergarten entry assessment shall address the five essential domains of
school readiness: language and literacy development, cognition and general
knowledge, approaches toward learning, physical well-being and motor
development, and social and emotional development.

(e)The
kindergarten entry assessment shall be (i) administered at the classroom level
in all local school administrative units; (ii) aligned to North Carolina's
early learning and development standards and to the standard course of study;
and (iii) reliable, valid, and appropriate for use with all children, including
those with disabilities and those who are English language learners.

(f)The
results of the developmental screening and the kindergarten entry assessment
shall be used to inform the following:

(1)The
status of children's learning at kindergarten entry.

(2)Instruction
of each child.

(3)Efforts
to reduce the achievement gap at kindergarten entry.

(4)Continuous
improvement of the early childhood system.

"§ 115C-83.1F.
Facilitating early grade reading proficiency.

(a)Kindergarten,
first, second, and third grade students shall be assessed with valid, reliable,
formative, and diagnostic reading assessments made available to local school
administrative units by the State Board of Education pursuant to G.S. 115C-174.11(a).
Difficulty with reading development identified through administration of
formative and diagnostic assessments shall be addressed with instructional
supports and services. To the greatest extent possible, kindergarten through
third grade reading assessments shall yield data that can be used with the
Education Value Added Assessment System (EVAAS), or a compatible and comparable
system approved by the State Board of Education, to analyze student data to
identify root causes for difficulty with reading development and to determine
actions to address them.

(c)Local
school administrative units are encouraged to partner with community
organizations, businesses, and other groups to provide volunteers, mentors, or
tutors to assist with the provision of instructional supports and services that
enhance reading development and proficiency.

"§ 115C-83.1G.
Elimination of social promotion.

(a)The
State Board of Education shall require that a student be retained in the third
grade if the student fails to demonstrate reading proficiency appropriate for a
third grade student, as demonstrated on a State-approved standardized test of
reading comprehension administered to third grade students. The test may be re-administered
once prior to the end of the school year.

(b)Students
may be exempt from mandatory retention in third grade for good cause but shall
continue to receive instructional supports and services and reading
interventions appropriate for their age and reading level. Good cause
exemptions shall be limited to the following:

(1)Limited
English Proficient students with less than two years of instruction in an
English as a Second Language program.

(2)Students
with disabilities, as defined in G.S. 115C-106.3(1), whose individualized
education program indicates the use of alternative assessments and reading
interventions.

(3)Students
who demonstrate reading proficiency appropriate for third grade students on an
alternative assessment approved by the State Board of Education. Teachers may
administer the alternative assessment following the administration of the State-approved
standardized test of reading comprehension typically given to third grade
students at the end of the school year, or after a student's participation in
the local school administrative unit's summer reading camp.

(4)Students
who demonstrate, through a student reading portfolio, reading proficiency
appropriate for third grade students. Teachers may submit the student reading
portfolio at the end of the school year, or after a student's participation in
the local school administrative unit's summer reading camp. The student reading
portfolio and review process shall be established by the State Board of
Education.

(5)Students
who have (i) received reading intervention and (ii) previously been retained
more than once in kindergarten, first, second or third grades.

(c)The
superintendent shall determine whether a student may be exempt from mandatory
retention on the basis of a good cause exemption. The following steps shall be
taken in making the determination:

(1)The
teacher of a student eligible for a good cause exemption shall submit
documentation of the relevant exemption and evidence that promotion of the
student is appropriate based on the student's academic record to the principal.
Such evidence shall be limited to the student's personal education plan,
individual education program, if applicable, alternative assessment, or student
reading portfolio.

(2)The
principal shall review the documentation and make an initial determination
whether the student should be promoted. If the principal determines the student
should be promoted, the principal shall make a written recommendation of
promotion to the superintendent for final determination. The superintendent's
acceptance or rejection of the recommendation shall be in writing.

"§ 115C-83.1H.
Successful reading development for retained students.

(a)Students
not demonstrating reading proficiency shall be enrolled in a summer reading
camp provided by the local school administrative unit prior to being retained.
Students who demonstrate reading proficiency on an alternative assessment of
reading comprehension or student reading portfolio after completing a summer
reading camp shall be promoted to the fourth grade. Students who do not
demonstrate reading proficiency on these measures after completing a summer
reading camp shall be retained under G.S. 115C-83.1G(a) and provided with
the instruction listed in subsection (b) of this section during the retained
year.

(b)Students
retained under G.S. 115C-83.1G(a) shall be provided with a teacher
selected based on demonstrated student outcomes in reading proficiency and
placed in an accelerated reading class or a transitional third and fourth grade
class combination, as appropriate. Classroom instruction shall include at least
90 minutes of daily, uninterrupted, evidence-based reading instruction, not to
include independent reading time, and other appropriate instructional supports
and services and reading interventions.

(c)The
State Board of Education shall establish a midyear promotion policy for any
student retained under G.S. 115C-83.1G(a) who, by November 1, demonstrates
reading proficiency through administration of the alternative assessment of
reading comprehension, or student reading portfolio review.

(d)Parents
or guardians of students who have been retained once under the provisions of
G.S. 115C-83.1G(a) shall be provided with a plan for reading at home,
including participation in shared and guided reading workshops for the parent
or guardian, and outlined in a parental or guardian contract.

(e)Parents
or guardians of students who have been retained twice under the provisions of
G.S. 115C-83.1G(a) shall be offered supplemental tutoring for the retained
student in evidence-based reading services outside the instructional day.

"§ 115C-83.1I. Notification requirements to parents
and guardians.

(a)Parents
or guardians shall be notified in writing, and in a timely manner, that the
student shall be retained, unless he or she is exempt from mandatory retention
for good cause,if the student is not demonstrating reading proficiency
by the end of third grade. Parents or guardians shall receive this notice when
a kindergarten, first, second or third grade student (i) is demonstrating
difficulty with reading development; (ii) is not reading at grade level; or
(iii) has a personal education plan under G.S. 115C-105.41.

(b)Parents
or guardians of any student who is to be retained under the provisions of
G.S. 115C-83.1G(a) shall be notified in writing of the reason the student
is not eligible for a good cause exemption as provided in G.S. 115C-83.1G(b).
Written notification shall also include a description of proposed reading
interventions that will be provided to the student to remediate identified
areas of reading deficiency.

(c)Parents
or guardians of students retained under G.S. 115C-83.1G(a) shall receive
at least monthly written reports on student progress towards reading
proficiency. The evaluation of the student's progress shall be based upon the
student's classroom work, observations, tests, assessments, and other relevant
information.

(d)Teachers
and principals shall provide opportunities to discuss with parents and
guardians the notifications listed in this section.

"§ 115C-83.1J.
Accountability measures.

(a)Each
local board of education shall publish annually on a Web site maintained by
that local school administrative unit and report in writing to the State Board
of Education by September 1 of each year the following information on the prior
school year:

(1)The
number and percentage of third grade students demonstrating and not
demonstrating reading proficiency on the State-approved standardized test of
reading comprehension administered to third grade students.

(2)The
number and percentage of third grade students who take and pass the alternative
assessment of reading comprehension.

(3)The
number and percentage of third grade students retained for not demonstrating
reading proficiency.

(4)The
number and percentage of third grade students exempt from mandatory third grade
retention by category of exemption as listed in G.S. 115C-83.1G(b).

(b)Each
local board of education shall report annually in writing to the State Board of
Education by September 1 of each year a description of all reading
interventions provided to students who have been retained under G.S. 115C-83.1G(a).

(c)The
State Board of Education shall establish a uniform format for local boards of
education to report the required information listed in subsections (a) and (b)
of this section and shall provide the format to local boards of education no
later than 90 days prior to the annual due date. The State Board of Education
shall compile annually this information and submit a State-level summary to the
Governor, the President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Joint Legislative Education Oversight Committee by
October 1 of each year, beginning with the 2014-2015 school year.

(d)The
State Board of Education and the Department of Public Instruction shall provide
technical assistance as needed to aid local school administrative units to
implement all provisions of this Part."

SECTION 1.(c) G.S. 115C-105.27(b)(1a)
is repealed.

SECTION 1.(d) G.S. 115C-105.41 reads as
rewritten:

"§ 115C-105.41.
Students who have been placed at risk of academic failure; personal education
plans.

In order to implement Part 1A of Article 8 of this
Chapter, Local local school administrative units shall
identify students who are at risk for academic failure and who are not
successfully progressing toward grade promotion and graduation, beginning no
later than the fourth grade.in kindergarten. Identification shall
occur as early as can reasonably be done and can be based on grades,
observations, diagnostic and formative assessments, State assessments,
and other factors, including reading on grade level, that impact student
performance that teachers and administrators consider appropriate, without
having to await the results of end-of-grade or end-of-course tests. No later
than the end of the first quarter, or after a teacher has had up to nine weeks
of instructional time with a student, a personal education plan for academic
improvement with focused intervention and performance benchmarks shall be
developed or updated for any student at risk of academic failure who is not
performing at least at grade level, as identified by the State end-of-grade
test and other factors noted above. Focused instructional supports and
services, reading intervention interventions and accelerated
activities should include research-based best evidence-based practices
that meet the needs of students and may include coaching, mentoring, tutoring,
summer school, Saturday school, and extended days. Local school administrative
units shall provide these activities free of charge to students. Local school
administrative units shall also provide transportation free of charge to all
students for whom transportation is necessary for participation in these
activities.

Local school administrative units shall give notice of the
personal education plan and a copy of the personal education plan to the
student's parent or guardian. Parents should be included in the implementation
and ongoing review of personal education plans.

Local school administrative units shall certify that they
have complied with this section annually to the State Board of Education. The
State Board of Education shall periodically review data on the progress of
identified students and report to the Joint Legislative Education Oversight
Committee.

No cause of action for monetary damages shall arise from the
failure to provide or implement a personal education plan under this
section."

SECTION 1.(e) G.S. 115C-174.11(a) reads
as rewritten:

"(a) Assessment
Instruments for First and Second Grades.Kindergarten, First, Second,
and Third Grades. - The State Board of Education shall adopt develop,
adopt, and provide to the local school administrative units developmentally
appropriate individualized assessment instruments consistent with the Basic
Education Program and Part 1A of Article 8 of this Chapter for the first
and second grades, rather than standardized tests. kindergarten, first,
second, and third grades. Local school administrative units may shall
use these assessment instruments provided to them by the State Board for first
and second grade students,kindergarten, first, second, and third grade
students to assess progress, diagnose difficulties, and to inform instruction
and remediation needs.and Local school administrative units shall
not use standardized tests for summative assessment of kindergarten, first,
and second grade students except as required as a condition of receiving
federal grants."

SECTION 1.(f) G.S. 115C-238.29F is
amended by adding a new subsection to read:

"(d1)Reading Proficiency
and Student Promotion. -

(1)Students
in the third grade shall be retained if the student fails to demonstrate
reading proficiency by reading at or above the third grade level as
demonstrated by the results of the State-approved standardized test of reading
comprehension administered to third grade students. The charter school shall
provide reading interventions to retained students to remediate reading
deficiency, which may include 90 minutes of daily, uninterrupted, evidence-based
reading instruction, accelerated reading classes, transition classes containing
third and fourth grade students, and summer reading camps.

(2)Students
may be exempt from mandatory retention in third grade for good cause but shall
continue to receive instructional supports and services and reading
interventions appropriate for their age and reading level. Good cause
exemptions shall be limited to the following:

a.Limited
English Proficient students with less than two years of instruction in an
English as a Second Language program.

b.Students
with disabilities, as defined in G.S. 115C-106.3(1), whose individualized
education program indicates the use of alternative assessments and reading
interventions.

c.Students
who demonstrate reading proficiency appropriate for third grade students on an
alternative assessment of reading comprehension. The charter school shall
notify the State Board of Education of the alternative assessment used to
demonstrate reading proficiency.

d.Students
who demonstrate, through a student reading portfolio, reading proficiency
appropriate for third grade students.

e.Students
who have (i) received reading intervention and (ii) previously been retained
more than once in kindergarten, first, second or third grades.

(3)The
charter school shall provide notice to parents and guardians when a student is
not reading at grade level. The notice shall state that if the student's
reading deficiency is not remediated by the end of third grade, the student
shall be retained unless he or she is exempt from mandatory retention for good
cause. Notice shall also be provided to parents and guardians of any student
who is to be retained under this subsection of the reason the student is not
eligible for a good cause exemption, as well as a description of proposed
reading interventions that will be provided to the student to remediate
identified areas of reading deficiency.

(4)The
charter school shall annually publish on the charter school's Web site and report
in writing to the State Board of Education by September 1 of each year the
following information on the prior school year:

a.The
number and percentage of third grade students demonstrating and not
demonstrating reading proficiency on the State-approved standardized test of
reading comprehension administered to third grade students.

b.The
number and percentage of third grade students not demonstrating reading
proficiency and who do not return to the charter school for the following
school year.

c.The
number and percentage of third grade students who take and pass the alternative
assessment of reading comprehension.

d.The
number and percentage of third grade students retained for not demonstrating
reading proficiency.

e.The
number and percentage of third grade students exempt from mandatory third grade
retention by category of exemption as listed in subdivision (2) of this
subsection."

SECTION 1.(g) G.S. 115C-288(a) reads as
rewritten:

"(a) To Grade and
Classify Pupils. - The principal shall have authority to grade and classify pupilspupils,
except as provided in G.S. 115C-83.1G(a). In determining the
appropriate grade for a pupil who is already attending a public school, the
principal shall consider the pupil's classroom work and grades, the pupil's
scores on standardized tests, and the best educational interests of the pupil.
The principal shall not make the decision solely on the basis of standardized
test scores. If a principal's decision to retain a child in the same grade is
partially based on the pupil's scores on standardized tests, those test scores
shall be verified as accurate.

A principal shall not require additional testing of a student
entering a public school from a school governed under Article 39 of this
Chapter if test scores from a nationally standardized test or nationally
standardized equivalent measure that are adequate to determine the appropriate
placement of the child are available."

SECTION 1.(h) G.S. 130A-440(b) reads as
rewritten:

"(b) A health assessment
shall include a medical history and physical examination with screening for
vision and hearing and, if appropriate, testing for anemia and tuberculosis.
Vision screening shall be conducted in accordance with G.S. 130A-440.1.
The health assessment may also include dental screening and developmental
screening for cognition, language, and motor function. The developmental
screening of cognition and language abilities may be conducted in accordance
with G.S. 115C-83.1E(a)."

SECTION 1.(i) There is appropriated from the
General Fund to the Department of Public Instruction the sum of thirty-four
million eighty-seven thousand six hundred fifty dollars ($34,087,650) for the
2012-2013 fiscal year to implement the requirements of this section. It is the
intent of the General Assembly to increase this appropriation for the 2013-2014
fiscal year to implement additional requirements in that fiscal year.

SECTION 1.(j) This section is effective when
it becomes law and applies beginning with the 2013-2014 school year. The
developmental screening and kindergarten entry assessment required by this
section shall be administered beginning with the 2014-2015 school year

PART II. STATE EMPLOYEE LITERACY
VOLUNTEER LEAVE TIME

SECTION 2.(a) G.S. 126-4 reads as
rewritten:

"§
126-4. Powers and duties of State Personnel Commission.

Subject to the approval of the Governor, the State Personnel
Commission shall establish policies and rules governing each of the following:

…

(5b)A leave program
that allows employees to volunteer in a literacy program in a public school for
up to five hours each month.

…."

SECTION 2.(b) This section is effective when
it becomes law.

PART III. SCHOOL PERFORMANCE
GRADES

SECTION 3.(a) G.S. 115C-12(9)c1. reads
as rewritten:

"c1. To issue an annual
"report card" for the State and for each local school administrative
unit, assessing each unit's efforts to improve student performance based on the
growth in performance of the students in each school and taking into account
progress over the previous years' level of performance and the State's
performance in comparison with other states. This assessment shall take into
account factors that have been shown to affect student performance and that the
State Board considers relevant to assess the State's efforts to improve student
performance. As a part of the annual "report card" for each local
school administrative unit, the State Board shall award an overall numerical
school performance score on a scale of zero to 100 and a corresponding letter
grade of A, B, C, D, or F earned by each school within the local school
administrative unit. The school performance score and grade shall reflect
student performance on annual subject specific assessments, college and
workplace readiness measures, and graduation rates. For schools serving
students in any grade from kindergarten to eighth grade, separate performance
scores and grades shall also be awarded based on the school performance in
reading and mathematics respectively. The annual "report card" for
schools serving students in third grade also shall include the number and
percentage of third grade students who (i) take and pass the alternative
assessment of reading comprehension; (ii) were retained in third grade for not
demonstrating reading proficiency as indicated in G.S. 115C-83.1G(a); and
(iii) were exempt from mandatory third grade retention by category of exemption
as listed in G.S. 115C-83.1G(b)."

SECTION 3.(b) G.S. 115C-47(58) reads as
rewritten:

"(58) To Inform the Public About the
North Carolina School Report Cards Issued by the State Board of Education. -
Each local board of education shall ensure that the report card issued for it
by the State Board of Education receives wide distribution to the local press
or otherwise.is otherwise provided to the public. Each local board of
education shall ensure that the overall school performance score and grade
earned by each school in the local school administrative unit for the current
and previous four school years is prominently displayed on the Web site of the
local school administrative unit. If any school in the local school
administrative unit is awarded a grade of D or F, the local board of education
shall provide notice of the grade in writing to the parent or guardian of all
students enrolled in that school."

SECTION 3.(c) G.S. 115C-238.29F is
amended by adding a new subsection to read:

"(l)North
Carolina School Report Cards. - A charter school shall ensure that the report
card issued for it by the State Board of Education receives wide distribution
to the local press or is otherwise provided to the public. A charter school
shall ensure that the overall school performance score and grade earned by the
charter school for the current and previous four school years is prominently
displayed on the school Web site. If a charter school is awarded a grade of D
or F, the charter school shall provide notice of the grade in writing to the
parent or guardian of all students enrolled in that school."

SECTION 3.(d) G.S. 115C-238.66 is
amended by adding a new subdivision to read:

"(11)North Carolina School
Report Cards. - A regional school shall ensure that the report card issued for
it by the State Board of Education receives wide distribution to the local
press or is otherwise provided to the public. A regional school shall ensure
that the overall school performance score and grade earned by the regional
school for the current and previous four school years is prominently displayed
on the school Web site. If a regional school is awarded a grade of D or F, the
regional school shall provide notice of the grade in writing to the parent or
guardian of all students enrolled in that school."

SECTION 3.(e) The State Board of Education
shall award school performance scores and grades as required by G.S. 115C-12(9)c1.
as follows:

(1) The State Board
of Education shall calculate school performance scores by totaling the sum of
points earned by the school and converting the sum of points to a 100 point
scale. Subsections (2) and (3) of this section provide the school performance
elements for schools serving students in kindergarten through eighth grade.
Subsection (4) of this section provides the school performance elements for schools
serving grades nine through twelve. The school performance score shall be used
to determine the school performance grade based on the following scale:

a. At least 90
performance grade points for an overall school performance grade of A.

b. At least 80
performance grade points for an overall school performance grade of B.

c. At least 70
performance grade points for an overall school performance grade of C.

d. At least 60
performance grade points for an overall school performance grade of D.

e. A school
that accumulates less than 60 points shall be assigned an overall school
performance grade of F.

(2) For schools
serving students in kindergarten through eighth grade the overall school
performance score shall be calculated based on the sum of three school
performance elements.

a. The score
shall be calculated as follows:

1. One point
for each percent of students who score at or above proficient on annual
assessments for mathematics in grades three through eight.

2. One point
for each percent of students who score at or above proficient on annual
assessments for reading in grades three through eight.

3. One point
for each percent of students who score at or above proficient on annual
assessments for science in grades five and eight.

(3) For schools
serving students in kindergarten through eighth grade, the school performance
scores in reading and mathematics, respectively, shall be earned as follows:

a. The
literacy school performance score shall be based on the percent of students who
score at or above proficient on annual assessments for reading assessments in
grades three through eight.

b. The
mathematics school performance score shall be based on the percent of students
who score at or above proficient on annual assessments for mathematics in
grades three through eight.

(4) The school
performance score earned by schools serving students in ninth through twelfth
grade shall be calculated based on the sum of seven school performance
elements.

a. The score
shall be calculated as follows:

1. One point
for each percent of students who score at or above proficient on annual
assessments for mathematics.

2. One point
for each percent of students who score at or above proficient on annual
assessments for English.

3. One point
for each percent of students who score at or above proficient on annual
assessments for biology.

4. One point
for each percent of students who complete a higher-level mathematics class with
a passing grade.

5. One point
for each percent of students who score at or above a level demonstrating
college readiness on a nationally normed test of college readiness.

6. One point
for each percent of students who graduate within four years of entering high
school.

7. One point
for each percent of students who demonstrate workplace readiness on a
nationally normed test of workplace readiness.

(5) In calculating
the overall school performance score earned by schools, the State Board of
Education shall proportionally adjust the scale to account for the absence of a
school performance element for award of scores to a school that does not have a
measure of one of the school performance elements annually assessed for the
grades taught at that school.

(6) The State Board
of Education shall report to the Joint Legislative Education Oversight
Committee annually by January 15 on recommended adjustments to the school
performance grade elements and scales for award of scores and grades.

SECTION 3.(f) This section is effective when
it becomes law and applies beginning with the 2012-2013 school year.

PART IV. MAXIMIZE INSTRUCTIONAL TIME

SECTION 4.(a) G.S. 115C-174.12(a) reads
as rewritten:

"(a) The State Board
of Education shall establish policies and guidelines necessary for minimizing
the time students spend taking tests administered through State and local
testing programs, for minimizing the frequency of field testing at any one
school, and for otherwise carrying out the provisions of this Article. These
policies and guidelines shall include the following:

(1) Schools shall
devote no more than two days of instructional time per year to the taking of
practice tests that do not have the primary purpose of assessing current
student learning;

(2) Students in a
school shall not be subject to field tests or national tests during the two-week
period preceding the administration of end-of-grade tests, end-of-course tests,
or the school's regularly scheduled final exams; and

(3) No school shall
participate in more than two field tests at any one grade level during a school
year unless that school volunteers, through a vote of its school improvement
team, to participate in an expanded number of field tests.year.

(4)All
annual assessments of student achievement adopted by the State Board of
Education pursuant to G.S. 115C-174.11(c)(1) and (3) and all final exams
for courses shall be administered within the final 10 instructional days of the
school year for year-long courses and within the final five instructional days
of the semester for semester courses. Exceptions shall be permitted to
accommodate a student's individualized education program and section 504 (29
U.S.C. § 794) plans, and for the administration of final exams for courses with
national or international curriculums required to be held at designated times.

These policies shall reflect standard testing practices to
insure reliability and validity of the sample testing. The results of the field
tests shall be used in the final design of each test. The State Board of
Education's policies regarding the testing of children students with
disabilities shall (i) provide broad accommodations and alternate methods of
assessment that are consistent with a child's student's individualized
education program and section 504 (29 U.S.C. § 794) plans, (ii) prohibit the
use of statewide tests as the sole determinant of decisions about a child'sstudent's
graduation or promotion, and (iii) provide parents with information about
the Statewide Testing Program and options for students with disabilities. The
State Board shall report its proposed policies and proposed changes in policies
to the Joint Legislative Education Oversight Committee prior to adoption.

The State Board of Education may appoint an Advisory Council
on Testing to assist in carrying out its responsibilities under this
Article."

SECTION 4.(b) This section is effective when it
becomes law and applies beginning with the 2012-2013 school year.

PART V. ADJUSTMENTS TO SCHOOL
CALENDAR

SECTION 5.(a) G.S. 115C-84.2 reads as
rewritten:

"§ 115C-84.2.
School calendar.

(a) School
Calendar. - Each local board of education shall adopt a school calendar
consisting of 215 days all of which shall fall within the fiscal year. A school
calendar shall include the following:

(1) A minimum of 185
days and or 1,025 hours of instruction covering at least nine
calendar months. The local board shall designate when the 185 instructional
days shall occur. The number of instructional hours in an instructional day may
vary according to local board policy and does not have to be uniform among the
schools in the administrative unit. Local boards may approve school improvement
plans that include days with varying amounts of instructional time. If school
is closed early due to inclement weather, the day and the scheduled amount of
instructional hours may count towards the required minimum to the extent
allowed by State Board policy. The school calendar shall include a plan for
making up days and instructional hours missed when schools are not opened due
to inclement weather.

…

(4a)Three days, as
designated by the local board, for use as teacher workdays. These days shall be
protected to allow teachers to complete instructional and classroom
administrative duties. The local school administrative unit shall not impose
any additional tasks on these days. The local board shall schedule at least one
of these days at the beginning of the school year and at least one at the end
of the school year.

(5) The remaining
days scheduled by the local board in consultation with each school's principal
for use as teacher workdays, additional instructional days, or other lawful
purposes. Before consulting with the local board, each principal shall work
with the school improvement team to determine the days to be scheduled and the
purposes for which they should be scheduled. Days may be scheduled and planned
for different purposes for different personnel and there is no requirement to
schedule the same dates for all personnel. In order to make up days for school
closing because of inclement weather, the local board may designate any of the
days in this subdivision as additional make-up days to be scheduled after the
last day of student attendance.

If the State Board of Education finds that it will enhance
student performance to do so, the State Board may grant a local board of
education a waiver to use up to five of the instructional days required by
subdivision (1) of this subsection as teacher workdays. For each instructional
day waived, the State Board shall waive an equivalent number of instructional
hours.

Local boards and individual schools are encouraged to use the
calendar flexibility in order to meet the annual performance standards set by
the State Board. Local boards of education shall consult with parents and the
employed public school personnel in the development of the school calendar.

Local boards shall designate at least two days scheduled
under subdivision (5) of this subsection as days on which teachers may take
accumulated vacation leave. Local boards may designate the remaining days
scheduled in subdivision (5) of this subsection as days on which teachers may
take accumulated vacation leave, but local boards shall give teachers at least
14 calendar days' notice before requiring a teacher to work instead of taking
vacation leave on any of these days. A teacher may elect to waive this notice
requirement for one or more of these days.

…

"(d) Opening and Closing
Dates. - Local boards of education shall determine the dates of opening and
closing the public schools under subdivision (a)(1) of this section. Except for
year-round schools, the opening date for students shall not be before August
25,be no earlier than the Monday closest to August 26, and the
closing date for students shall not be after June 10.be no later than
the Friday closest to June 11. On a showing of good cause, the State Board
of Education may waive this requirement the requirement that the
opening date for students be no earlier than the Monday closest to August 26
and may allow the local board of education to set an opening data no earlier
than the Monday closest to August 19, to the extent that school calendars
are able to provide sufficient days to accommodate anticipated makeup days due
to school closings. A local board may revise the scheduled closing date if
necessary in order to comply with the minimum requirements for instructional
days or instructional time. For purposes of this subsection, the term
"good cause" means either that:that schools in any local
school administrative unit in a county have been closed eight days per year
during any four of the last 10 years because of severe weather conditions,
energy shortages, power failures, or other emergency situations.

(1)Schools
in any local school administrative unit in a county have been closed eight days
per year during any four of the last 10 years because of severe weather
conditions, energy shortages, power failures, or other emergency situations; or

(2)Schools
in any local school administrative unit in a county have been closed for all or
part of eight days per year during any four of the last 10 years because of
severe weather conditions. For purposes of this subdivision, a school shall be
deemed to be closed for part of a day if it is closed for two or more hours.

The State Board also may waive this requirement for an
educational purpose. The term "educational purpose" means a local
school administrative unit establishes a need to adopt a different calendar for
(i) a specific school to accommodate a special program offered generally to the
student body of that school, (ii) a school that primarily serves a special
population of students, or (iii) a defined program within a school. The State
Board may grant the waiver for an educational purpose for that specific school
or defined program to the extent that the State Board finds that the
educational purpose is reasonable, the accommodation is necessary to accomplish
the educational purpose, and the request is not an attempt to circumvent the
opening and closing dates set forth in this subsection. The waiver requests for
educational purposes shall not be used to accommodate system-wide class
scheduling preferences.

The required opening and closing dates under this subsection
shall not apply to any school that a local board designated as having a
modified calendar for the 2003-2004 school year or to any school that was part
of a planned program in the 2003-2004 school year for a system of modified
calendar schools, so long as the school operates under a modified calendar.

…"

SECTION 5.(b) G.S. 115C-238.29F(d)(1)
reads as rewritten:

"(1) The school shall
provide instruction each year for at least 185 days.days or 1,025
hours over nine calendar months.If the State Board of Education finds
that it will enhance student performance to do so, the State Board may grant a
charter school a waiver to use up to five of these instructional days as
teacher workdays."

SECTION 5.(c) G.S. 115C-238.53 is
amended by adding a new subsection to read:

"(g)The
requirements of G.S. 115C-84.2 shall not apply to a program approved under
this Part, however, the program shall provide instruction each year for at
least 185 days or 1,025 hours over nine calendar months."

SECTION 5.(d) G.S. 115C-238.66(1)(d)
reads as rewritten:

"d. The board
of directors shall adopt a school calendar consisting of a minimum of 185 days or
1,025 hours of instruction covering at least nine calendar months."

SECTION 5.(e) This section is effective when
it becomes law and applies beginning with the 2013-2014 school year.

PART VI. funding for the addition of five instructional days
within the existing school calendar

SECTION 6.(a) To fully provide for the
expansion of five additional instructional days in accordance with S.L. 2011-145,
Section 7.29 for those days for which a local school administrative unit has
not requested and received a waiver from the State Board of Education for the
2012-2013 school year:

(1)There is
appropriated from the General Fund to the Department of Public Instruction the
sum of forty thousand one hundred sixty-eight dollars ($40,168) for the 2012-2013
fiscal year to increase the amount appropriated for the noninstructional
support personnel allotment.

(2)There is
appropriated from the General Fund to the Department of Public Instruction the
sum of three hundred fifty-one thousand four hundred sixty-nine dollars
($351,469) for the 2012-2013 fiscal year to increase the amount appropriated
for the transportation allotment.

SECTION 6.(b) This section becomes effective
July 1, 2012.

PART VII. ESTABLISH NC TEACHER CORPS

SECTION 7.(a) Article 20 of Chapter 115C of
the General Statutes is amended by adding a new section to read:

"§ 115C-296.7.
North Carolina Teacher Corps.

(a)There
is established the North Carolina Teacher Corps (NC Teacher Corps) to recruit
and place recent graduates of colleges and universities and mid-career
professionals as teachers in high needs public schools.

(b)The
State Board of Education, in consultation with the Board of Governors of The
University of North Carolina and the North Carolina Independent Colleges and
Universities, shall develop and administer the NC Teacher Corps. In the
development of the NC Teacher Corps, the State Board of Education shall
consider examples of other successful teacher recruitment models used
nationally and in other states.

(c)Applications
shall be received annually for admission to the NC Teacher Corps. The State
Board of Education shall establish application criteria, including, at a
minimum, an award of a bachelor's degree from an accredited college or
university. The State Board of Education may establish a committee to annually
evaluate and select candidates for admission to the NC Teacher Corps.

(d)The
State Board of Education shall identify local school administrative units with
unmet recruitment needs and high needs schools and shall coordinate placement
of NC Teacher Corps members in those schools.

(e)The
State Board of Education, in coordination with the Board of Governors, shall develop
an intensive summer training institute for NC Teacher Corps members to provide
coursework and training on essential teaching frameworks, curricula, and lesson
planning skills, as well as identification and education of students with
disabilities, positive management of student behavior, effective communication
for defusing and deescalating disruptive and dangerous behavior, and safe and
appropriate use of seclusion and restraint. The intensive summer training
institute also shall address identification of difficulty with reading
development and of reading deficiencies, and the provision of reading
instruction, intervention, and remediation strategies.

(f)The
State Board of Education, in coordination with the Board of Governors, shall
provide ongoing support to NC Teaching Corps members through coaching,
mentoring, and continued professional development.

(a) The State Board
of Education shall have entire control of licensing all applicants for teaching
positions in all public elementary and high schools of North Carolina; and it
shall prescribe the rules and regulations for the renewal and extension of all
licenses and shall determine and fix the salary for each grade and type of
license which it authorizes.

The State Board of Education may require an applicant for an
initial bachelors degree certificate or graduate degree certificate to
demonstrate the applicant's academic and professional preparation by achieving
a prescribed minimum score on a standard examination appropriate and adequate
for that purpose. Elementary Education (K-6) teachers shall also achieve a
prescribed minimum score on subtests or standard examinations specific to
teaching reading and mathematics. The State Board of Education shall permit
an applicant to fulfill any such testing requirement before or during the
applicant's second year of teaching provided the applicant took the examination
at least once during the first year of teaching. The State Board of Education
shall make any required standard initial licensure exam sufficiently rigorous
and raise the prescribed minimum score as necessary to ensure that each
applicant has adequate received high quality academic and
professional preparation to teach.teach effectively.

…

(b) It is the
policy of the State of North Carolina to maintain the highest quality teacher
education programs and school administrator programs in order to enhance the
competence of professional personnel licensed in North Carolina. To the end
that teacher preparation programs are upgraded to reflect a more rigorous
course of study, the State Board of Education, as lead agency in coordination
and cooperation with the University Board of Governors, the Board of Community
Colleges and such other public and private agencies as are necessary, shall
continue to refine the several licensure requirements, standards for approval
of institutions of teacher education, standards for institution-based
innovative and experimental programs, standards for implementing consortium-based
teacher education, and standards for improved efficiencies in the
administration of the approved programs. The licensure program shall provide
for initial licensure after completion of preservice training, continuing
licensure after three years of teaching experience, and license renewal every
five years thereafter, until the retirement of the teacher. The last license
renewal received prior to retirement shall remain in effect for five years
after retirement. The licensure program shall also provide for lifetime
licensure after 50 years of teaching.

The State Board of Education, as lead agency in coordination
with the Board of Governors of The University of North Carolina and any other
public and private agencies as necessary, shall continue to raise standards for
entry into teacher education programs.

The State Board of Education, in consultation with local
boards of education and the Board of Governors of The University of North
Carolina, shall evaluate and modify, as necessary, the academic requirements
for students preparing to teach science in middle and high schools to ensure
that there is adequate preparation in issues related to science laboratory
safety.

The State Board of Education, in consultation with the Board
of Governors of The University of North Carolina, shall evaluate and develop
enhanced requirements for continuing licensure. The new requirements shall
reflect more rigorous standards for continuing licensure and to the extent
possible shall be aligned with quality professional development programs that
reflect State priorities for improving student achievement. Standards for
continuing licensure shall include at least three continuing education credits
related to literacy for elementary and middle school teachers. Literacy renewal
credits shall include assessment, diagnosis, and intervention strategies for
students not demonstrating reading proficiency. Oral language, phonemic and
phonological awareness, phonics, vocabulary, fluency, and comprehension shall
be addressed in literacy-related activities leading to certification renewal
for elementary school teachers.

The State Board of Education, in consultation with local
boards of education and the Board of Governors of The University of North
Carolina, shall reevaluate and enhance the requirements for renewal of teacher
licenses. The State Board shall consider modifications in the license renewal
achievement and to make it a mechanism for teachers to renew continually their
knowledge and professional skills. The State Board shall adopt new standards
for the renewal of teacher licenses by May 15, 1998.

The standards for approval of institutions of teacher
education shall require that teacher education programs for all students
include demonstrated competencies in (i) the identification and education of
children with disabilities and (ii) positive management of student behavior and
effective communication techniques for defusing and deescalating disruptive or
dangerous behavior. The standards for approval of institutions of teacher
education shall require that elementary teacher education programs include
demonstrated competencies in (i) teaching of reading, including a substantive
understanding of reading as a process involving oral language, phonological and
phonemic awareness, phonics, fluency, vocabulary, and comprehension; (ii)
evidence-based assessment and diagnosis of specific areas of difficulty with
reading development and of reading deficiencies; and (iii) appropriate
application of instructional supports and services and reading interventions to
ensure reading proficiency for all students. The State Board of Education
shall incorporate the criteria developed in accordance with G.S. 116-74.21
for assessing proposals under the School Administrator Training Program into
its school administrator program approval standards.

All North Carolina institutions of higher education that
offer teacher education programs, masters degree programs in education, or
masters degree programs in school administration shall provide performance reports
to the State Board of Education. The performance reports shall follow a common
format, shall be submitted according to a plan developed by the State Board,
and shall include the information required under the plan developed by the
State Board.

…

(c) It is the
policy of the State of North Carolina to encourage lateral entry into the
profession of teaching by skilled individuals from the private sector. To this
end, before the 1985-86 school year begins, the State Board of Education shall
develop criteria and procedures to accomplish the employment of such
individuals as classroom teachers. Beginning with the 2006-2007 school year,
the criteria and procedures shall include preservice training in (i) the
identification and education of children with disabilities and (ii) positive
management of student behavior, effective communication for defusing and
deescalating disruptive or dangerous behavior, and safe and appropriate use of
seclusion and restraint. Skilled individuals who choose to enter the profession
of teaching laterally may be granted a provisionallateral entry teaching
license for no more than three years and shall be required to obtain licensure
before contracting for a fourth year of service with any local administrative
unit in this State.

.…"

SECTION 8.(b) This section is effective when
it becomes law and applies beginning with the 2013-2014 school year.

PART IX. PROOF OF STATE-FUNDED LIABILITY INSURANCE

SECTION 9.(a) G.S. 115C-12 reads as
rewritten:

"§ 115C-12.
Powers and duties of the Board generally.

The general supervision and administration of the free public
school system shall be vested in the State Board of Education. The State Board
of Education shall establish policy for the system of free public schools,
subject to laws enacted by the General Assembly. The powers and duties of the
State Board of Education are defined as follows:

…

(9) Miscellaneous
Powers and Duties. - All the powers and duties exercised by the State Board of
Education shall be in conformity with the Constitution and subject to such laws
as may be enacted from time to time by the General Assembly. Among such duties
are:

…

f.To annually notify public school employees of the availability and coverage
of professional liability insurance.

.…"

SECTION 9.(b) This section is effective when
it becomes law and applies beginning with the 2012-2013 school year.

PART X. PAY FOR EXCELLENCE

SECTION 10.(a) Each local board of education
shall develop a plan of performance pay for all licensed personnel employed by
the local board. Under the performance pay plan, licensed employees
should be eligible to receive bonuses or adjustments to base salary for meeting
certain performance criteria. Criteria for award of bonuses or adjustments to
base salary should include, but are not limited to, the following factors:

(1) Annual growth in
student achievement of students assigned to a teacher's classroom, when
applicable.

(2) Annual growth in
student achievement of students assigned to a specific school.

(3) Assignment of
additional academic responsibilities.

(4) Assignment to a
hard-to-staff school.

(5) Assignment to a
hard-to-staff subject area.

Local boards of education shall submit plans to the State
Board of Education no later than March 1, 2013. The State Board of Education
shall report on these plans and the achievement-based compensation models
developed as part of the federal Race to the Top grant and shall submit the
report and all plans to the Fiscal Research Division, the Joint Legislative
Commission on Governmental Operations, and the respective Subcommittees on
Education Appropriations of the Senate and House of Representatives no later
than April 15, 2013. Members of the public may also submit plans for performance
pay no later than April 15, 2013 to the Fiscal Research Division, the Joint
Legislative Commission on Governmental Operations, and the respective
Subcommittees on Education Appropriations of the Senate and House of
Representatives.

SECTION 10.(b) This section is effective
when it becomes law.

PART XI. CLARIFY NC PRE-K PROGRAM ELIGIBILITY

SECTION 11.(a) Section 10.7(f) of S.L. 2011-145
is rewritten to read:

"SECTION 10.7.(f)The
prekindergarten program may continue to serve at-risk children identified
through the existing "child find" methods in which at-risk children
are currently served within the Division of Child Development. The Division of
Child Development shall serve at-risk children regardless of income. However,
the total number of at-risk children served shall constitute no more than
twenty percent (20%) of the four-year-olds served within the prekindergarten
program. Any The Division of Child Development and Early Education shall
establish income eligibility requirements for the program not to exceed seventy-five
percent (75%) of the State median income. Up to twenty percent (20%) of
children enrolled may have family incomes in excess of seventy-five percent
(75%) of median income if they have other designated risk factors. Furthermore,
any age-eligible child who is a child of either of the following shall be
eligible for the program: (i) an active duty member of the Armed Forces of the
United States, including the North Carolina National Guard, State military
forces, or a reserve component of the Armed Forces, who was ordered to active
duty by the proper authority within the last 18 months or is expected to be
ordered within the next 18 months or (ii) a member of the Armed Forces of the
United States, including the North Carolina National Guard, State military
forces, or a reserve component of the Armed Forces, who was injured or killed
while serving on active duty. Eligibility determinations for prekindergarten
participants may continue through local education agencies and local North Carolina
Partnership for Children, Inc., partnerships."

SECTION 11.(b) Section 10.7(h) of S.L. 2011-145
is repealed.

SECTION 11.(c) There is appropriated from
the General Fund to the Department of Health and Human Services, Division of
Child Development and Early Education, the sum of eleven million three hundred
eight thousand three hundred sixty three dollars ($11,308,363) for the 2012-2013
fiscal year to add two thousand two hundred sixty one (2,261) slots to be used
in the NC Pre-K program.

SECTION 11.(d) This section is effective
when it becomes law.

PART XII. REPEAL PROHIBITION ON TEACHER PREPAYMENT

SECTION 12.(a) Section 5 of S.L. 2011-379 is
repealed.

SECTION 12.(b) This section becomes
effective July 1, 2012.

PART XIII. TAX DEDUCTION FOR EDUCATIONAL SUPPLIES

SECTION 13.(a) G.S. 105-134.6(b) is
amended by adding a new subdivision to read:

"(b) Other Deductions. -
In calculating North Carolina taxable income, a taxpayer may deduct any of the
following items to the extent those items are included in the taxpayer's
adjusted gross income.

…

(23)An amount not to
exceed two hundred fifty dollars ($250.00) paid or incurred by an eligible
educator in connection with items listed in this subdivision. For purposes of
this subdivision, the term "eligible educator" has the same meaning
as defined in section 62 of the Code, as it existed on December 31, 2011. In
the case of a married couple filing a joint return where both spouses are
eligible educators, the maximum dollar amount is five hundred dollars
($500.00).

a.Books.

b.Supplies,
other than nonathletic supplies for courses of instruction in health or
physical education.

c.Computer
equipment, including related software and services.

d.Supplementary
materials used by the eligible educator in the classroom."

SECTION 13.(b) This section becomes
effective for taxable years beginning on or after January 1, 2012.

PART XIV. TEACHER CONTRACTS

SECTION 14.(a) G.S. 115C-325 is
repealed.

SECTION 14.(b) Part 3 ofArticle 22
of Chapter 115C of the General Statutes is amended by adding new sections to
read:

"§ 115C-325.1.
Definitions.

As used in this Part, the following definitions apply:

(1)"Day"
means calendar day. In computing any period of time, Rule 6 of the North
Carolina Rules of Civil Procedure shall apply.

(2)"Demote"
means to reduce the salary of a person who is classified or paid by the State
Board of Education as a classroom teacher or as a school administrator. The
word "demote" does not include (i) a suspension without pay pursuant
to G.S. 115C-325.5(a); (ii) the elimination or reduction of bonus
payments, including merit-based supplements, or a systemwide modification in
the amount of any applicable local supplement; or (iii) any reduction in salary
that results from the elimination of a special duty, such as the duty of an
athletic coach or a choral director.

(3)"Disciplinary
suspension" means a final decision to suspend a teacher or school administrator
without pay for no more than 60 days under G.S. 115C-325.5(b).

(4)"School
administrator" means a principal, assistant principal, supervisor, or
director whose major function includes the direct or indirect supervision of
teaching or any other part of the instructional program as provided in
G.S. 115C-287.1(a)(3).

(5)"Teacher"
means a person meeting each of the following requirements:

a.Who
holds at least one of the following licenses issued by the State Board of
Education:

1.A
current standard professional educator's license.

2.A
current lateral entry teaching license.

3.A
regular, not expired, vocational license.

b.Whose
major responsibility is to teach or directly supervise teaching or who is
classified by the State Board of Education or is paid either as a classroom
teacher or instructional support personnel.

c.Who
is employed to fill a full-time, permanent position.

"§ 115C-325.2.
Personnel files.

(a)Maintenance
of Personnel File. - The superintendent shall maintain in his or her office a
personnel file for each teacher that contains any complaint, commendation, or
suggestion for correction or improvement about the teacher's professional
conduct, except that the superintendent may elect not to place in a teacher's
file (i) a letter of complaint that contains invalid, irrelevant, outdated, or
false information or (ii) a letter of complaint when there is no documentation
of an attempt to resolve the issue. The complaint, commendation, or suggestion
shall be signed by the person who makes it and shall be placed in the teacher's
file only after five days' notice to the teacher. Any denial or explanation
relating to such complaint, commendation, or suggestion that the teacher
desires to make shall be placed in the file. Any teacher may petition the local
board of education to remove any information from the teacher's personnel file
that the teacher deems invalid, irrelevant, or outdated. The board may order
the superintendent to remove said information if it finds the information is
invalid, irrelevant, or outdated.

(b)Inspection
of Personnel Files. - The personnel file shall be open for the teacher's
inspection at all reasonable times but shall be open to other persons only in
accordance with such rules and regulations as the board adopts. Any
preemployment data or other information obtained about a teacher before the
teacher's employment by the board may be kept in a file separate from the
teacher's personnel file and need not be made available to the teacher. No data
placed in the preemployment file may be introduced as evidence at a hearing on
the dismissal or demotion of a teacher, except the data may be used to
substantiate G.S. 115C-325.4(a)(7) or G.S. 115C-325.4(a)(14) as
grounds for dismissal or demotion.

"§ 115C-325.3.
Teacher contracts.

(a)Length
of Contract. - A contract between the local board of education and a teacher
who has been employed by the local board of education for less than three years
shall be for a term of one school year. A contract or renewal of contract
between the local board of education and a teacher who has been employed by the
local board of education for three years or more shall be for a term of one,
two, three, or four school years.

(b)Superintendent
Recommendation to Local Board. - Local boards of education shall employ
teachers upon the recommendation of the superintendent. If a superintendent
intends to recommend to the local board of education that a teacher be offered
a new or renewed contract, the superintendent shall submit the recommendation
to the local board for action and shall include in the recommendation the
length of the term of contract. A superintendent shall only recommend a teacher
for a contract of a term longer than one school year if the teacher has shown
effectiveness as demonstrated on the teacher evaluation instrument. The local
board may approve the superintendent's recommendation, may decide not to offer
the teacher a new or renewed contract, or may decide to offer the teacher a
renewed contract for a different term than recommended by the superintendent.

(c)Dismissal
During Term of Contract. - A teacher shall not be dismissed or demoted during
the term of the contract except for the grounds and by the procedure set forth
in G.S. 115C-325.4.

(d)Recommendation
on Nonrenewal. - If a superintendent decides not to recommend that the local
board of education offer a renewed contract to a teacher, the superintendent
shall give the teacher written notice of the decision no later than May 15.

(e)Right
to Petition for Hearing. - A teacher shall have the right to petition the local
board of education for a hearing no later than June 1. The local board may, in
its discretion, grant a hearing regarding the superintendent's recommendation
for nonrenewal. The local board of education shall notify the teacher making
the petition of its decision whether to grant a hearing. If the request for a
hearing is granted, the local board shall conduct a hearing pursuant to the
provisions of G.S. 115C-45(c) and make a final decision on whether to
offer the teacher a renewed contract. The board shall notify a teacher whose
contract will not be renewed for the next school year of its decision by June
15; provided, however, if a teacher submits a request for a hearing, the board
shall provide the nonrenewal notification by July 1 or such later date upon the
written consent of the superintendent and teacher. A decision not to offer a
teacher a renewed contract shall not be on any basis prohibited by State or
federal law.

(f)Local
boards of education and teachers employed by the local board may mutually
modify the terms of the contract to permit part-time employment.

"§ 115C-325.4.
Dismissal or demotion for cause.

(a)Grounds.
- No teacher shall be dismissed or demoted or reduced to employment on a part-time
basis for disciplinary reasons during the term of the contract except for one
or more of the following:

(1)Inadequate
performance. In determining whether the professional performance of a teacher
is adequate, consideration shall be given to regular and special evaluation
reports prepared in accordance with the published policy of the employing local
school administrative unit and to any published standards of performance which
shall have been adopted by the board. Inadequate performance for a teacher
shall mean (i) the failure to perform at a proficient level on any standard of
the evaluation instrument or (ii) otherwise performing in a manner that is
below standard.

(2)Immorality.

(3)Insubordination.

(4)Neglect
of duty.

(5)Physical
or mental incapacity.

(6)Habitual
or excessive use of alcohol or nonmedical use of a controlled substance as
defined in Article 5 of Chapter 90 of the General Statutes.

(7)Conviction
of a felony or a crime involving moral turpitude.

(8)Advocating
the overthrow of the government of the United States or of the State of North
Carolina by force, violence, or other unlawful means.

(9)Failure
to fulfill the duties and responsibilities imposed upon teachers or school
administrators by the General Statutes of this State.

(10)Failure to comply
with such reasonable requirements as the board may prescribe.

(11)Any cause which
constitutes grounds for the revocation of the teacher's teaching license or the
school administrator's administrator license.

(12)Failure to
maintain his or her license in a current status.

(13)Failure to repay
money owed to the State in accordance with the provisions of Article 60 of
Chapter 143 of the General Statutes.

(14)Providing false
information or knowingly omitting a material fact on an application for
employment or in response to a preemployment inquiry.

(b)Dismissal
Procedure. - The procedures provided in G.S. 115C-325.6 shall be followed
for dismissals, demotions, or reductions to part-time employment for
disciplinary reasons for any reason specified in subsection (a) of this
section.

"§ 115C-325.5.
Teacher suspension.

(a)Immediate
Suspension Without Pay. - If a superintendent believes that cause exists for
dismissing a teacher for any reason specified in G.S. 115C-325.4 and that
immediate suspension of the teacher is necessary, the superintendent may
suspend the teacher without pay. Before suspending a teacher without pay, the
superintendent shall meet with the teacher and give him or her written notice
of the charges against the teacher, an explanation of the basis for the
charges, and an opportunity to respond. Within five days after a suspension
under this paragraph, the superintendent shall initiate a dismissal, demotion,
or disciplinary suspension without pay as provided in this section. If it is
finally determined that no grounds for dismissal, demotion, or disciplinary
suspension without pay exist, the teacher shall be reinstated immediately,
shall be paid for the period of suspension, and all records of the suspension
shall be removed from the teacher's personnel file.

(b)Disciplinary
Suspension Without Pay. - A teacher recommended for disciplinary suspension
without pay may request a hearing before the board. If no request is made
within 15 days, the superintendent may file his or her recommendation with the
board. If, after considering the recommendation of the superintendent and the
evidence adduced at the hearing if one is held, the board concludes that the
grounds for the recommendation are true and substantiated by a preponderance of
the evidence, the board, if it sees fit, may by resolution order such
suspension.

(1)Board
hearing for disciplinary suspensions for more than 10 days or for certain types
of intentional misconduct. - The procedures for a board hearing under
G.S. 115C-325.8 shall apply if any of the following circumstances exist:

a.The
recommended disciplinary suspension without pay is for more than 10 days; or

b.The
disciplinary suspension is for intentional misconduct, such as inappropriate
sexual or physical conduct, immorality, insubordination, habitual or excessive
alcohol or nonmedical use of a controlled substance as defined in Article 5 of
Chapter 90 of the General Statutes, any cause that constitutes grounds for the
revocation of the teacher's or school administrator's license, or providing
false information.

(2)Board
hearing for disciplinary suspensions of no more than 10 days. - The procedures
for a board hearing under G.S. 115C-325.7 shall apply to all disciplinary
suspensions of no more than 10 days that are not for intentional misconduct as
specified in G.S. 115C-325.5(b)(1).

(c)Suspension
with Pay. - If a superintendent believes that cause may exist for dismissing or
demoting a teacher for any reasons specified in G.S. 115C-325.4 but that
additional investigation of the facts is necessary and circumstances are such
that the teacher should be removed immediately from the teacher's duties, the
superintendent may suspend the teacher with pay for a reasonable period of
time, not to exceed 90 days. The superintendent shall notify the board of
education within two days of the superintendent's action and shall notify the
teacher within two days of the action and the reasons for it. If the
superintendent has not initiated dismissal or demotion proceedings against the
teacher within the 90-day period, the teacher shall be reinstated to the
teacher's duties immediately and all records of the suspension with pay shall
be removed from the teacher's personnel file at the teacher's request. However,
if the superintendent and the teacher agree to extend the 90-day period, the
superintendent may initiate dismissal or demotion proceedings against the
teacher at any time during the period of the extension.

"§ 115C-325.6.
Procedure for dismissal or demotion of a teacher for cause.

(a)Recommendation
of Dismissal or Demotion. - A teacher may not be dismissed, demoted, or reduced
to part-time employment for disciplinary reasons during the term of the
contract except upon the superintendent's recommendation based on one or more
of the grounds in G.S. 115C-325.4.

(b)Notice
of Recommendation. - Before recommending to a board the dismissal or demotion
of a teacher, the superintendent shall give written notice to the teacher by
certified mail or personal delivery of the superintendent's intention to make
such recommendation and shall set forth as part of the superintendent's
recommendation the grounds upon which he or she believes such dismissal or
demotion is justified. The superintendent also shall meet with the teacher and
provide written notice of the charges against the teacher, an explanation of
the basis for the charges, and an opportunity to respond if the teacher has not
done so under G.S. 115C-325.5(a). The notice shall include a statement to
the effect that the teacher, within 14 days after the date of receipt of the
notice, may request a hearing before the board on the superintendent's
recommendation. A copy of Part 3 of Article 22 of Chapter 115C shall also be
sent to the teacher.

(c)Request
for Hearing. - Within 14 days after receipt of the notice of recommendation,
the teacher may file with the superintendent a written request for a hearing
before the board on the superintendent's recommendation. The superintendent
shall submit his or her recommendation to the board. Within five days after
receiving the superintendent's recommendation and before taking any formal
action, the board shall set a time and place for the hearing and shall notify
the teacher by certified mail or personal delivery of the date, time, and place
of the hearing. The time specified shall not be less than 10 nor more than 30
days after the board has notified the teacher, unless both parties agree to an
extension. The hearing shall be conducted as provided in G.S. 115C-325.7.

(d)No
Request for Hearing. - If the teacher does not request a hearing before the
board within the 14 days provided, the superintendent may submit his or her
recommendation to the board. The board, if it sees fit, may by resolution (i)
reject the superintendent's recommendation or (ii) accept or modify the
superintendent's recommendation and dismiss, demote, reinstate, or suspend the
teacher without pay.

"§ 115C-325.7.
Hearing before board.

(a)Board
Hearing. - The following procedures shall apply to a hearing conducted by the
board:

(1)The
hearing shall be private.

(2)The
board shall receive the following:

a.Any
documentary evidence the superintendent intends to use to support the
recommendation. The superintendent shall provide the documentary evidence to
the teacher seven days before the hearing.

b.Any
documentary evidence the teacher intends to use to rebut the superintendent's
recommendation. The teacher shall provide the superintendent with the
documentary evidence three days before the hearing.

c.The
superintendent's recommendation and the grounds for the recommendation.

(3)The
superintendent and teacher may submit a written statement not less than three
days before the hearing.

(4)The
superintendent and teacher shall be permitted to make oral arguments to the
board based on the record before the board.

(5)The
board shall make findings of fact based upon a preponderance of the evidence.

(6)Within
two days following the hearing, the board shall send a written copy of its
findings and determination to the teacher and the superintendent.

(7)If the
board elects to make a transcript, the teacher may request and shall receive at
no charge a transcript of the proceedings. A teacher may have the hearing
transcribed by a court reporter at the teacher's expense.

(b)The
procedures of this section shall not apply to board hearings for disciplinary
suspensions without pay. Board hearings for G.S. 115C-325.5(b),
disciplinary suspensions without pay, shall be conducted as provided in
G.S. 115C-325.8.

"§ 115C-325.8.
Board hearing for certain disciplinary suspensions.

(a)The
following procedures shall apply for a board hearing under G.S. 115C-325.5(b),
disciplinary suspensions without pay:

(1)The
hearing shall be private.

(2)The
hearing shall be conducted in accordance with reasonable rules adopted by the
State Board of Education to govern such hearings.

(3)At the
hearing, the teacher and the superintendent shall have the right to be present
and to be heard, to be represented by counsel, and to present through witnesses
any competent testimony relevant to the issue of whether grounds exist for a
disciplinary suspension without pay.

(4)Rules
of evidence shall not apply to a hearing under this subsection and the board
may give probative effect to evidence that is of a kind commonly relied on by
reasonably prudent persons in the conduct of serious affairs.

(5)At
least eight days before the hearing, the superintendent shall provide to the
teacher a list of witnesses the superintendent intends to present, a brief
statement of the nature of the testimony of each witness, and a copy of any
documentary evidence the superintendent intends to present.

(6)At
least six days before the hearing, the teacher shall provide the superintendent
a list of witnesses the teacher intends to present, a brief statement of the
nature of the testimony of each witness, and a copy of any documentary evidence
the teacher intends to present.

(7)No new
evidence may be presented at the hearing except upon a finding by the board
that the new evidence is critical to the matter at issue and the party making
the request could not, with reasonable diligence, have discovered and produced
the evidence according to the schedule provided in this section.

(8)The
board may subpoena and swear witnesses and may require them to give testimony
and to produce records and documents relevant to the grounds for suspension
without pay.

(10)The
superintendent shall provide for making a transcript of the hearing. The
teacher may request and shall receive at no charge a transcript of the
proceedings.

"§ 115C-325.9.
Teacher resignation.

(a)Teacher
Resignation Following Recommendation for Dismissal. - If a teacher has been
recommended for dismissal under G.S. 115C-325.4 and the teacher chooses to
resign without the written agreement of the superintendent, then:

(1)The
superintendent shall report the matter to the State Board of Education.

(2)The
teacher shall be deemed to have consented to (i) the placement in the teacher's
personnel file of the written notice of the superintendent's intention to
recommend dismissal and (ii) the release of the fact that the superintendent
has reported this teacher to the State Board of Education to prospective
employers, upon request. The provisions of G.S. 115C-321 shall not apply
to the release of this particular information.

(3)The
teacher shall be deemed to have voluntarily surrendered his or her license
pending an investigation by the State Board of Education in a determination
whether or not to seek action against the teacher's license. This license
surrender shall not exceed 45 days from the date of resignation. Provided further
that the cessation of the license surrender shall not prevent the State Board
of Education from taking any further action it deems appropriate. The State
Board of Education shall initiate investigation within five working days of the
written notice from the superintendent and shall make a final decision as to
whether to revoke or suspend the teacher's license within 45 days from the date
of resignation.

(b)30
Days' Notice Resignation Requirement. - A teacher who is not recommended for
dismissal should not resign during the term of the contract without the consent
of the superintendent unless he or she has given at least 30 days' notice. If a
teacher who is not recommended for dismissal does resign during the term of the
contract without giving at least 30 days' notice, the board may request that
the State Board of Education revoke the teacher's license for the remainder of
that school year. A copy of the request shall be placed in the teacher's
personnel file.

"§ 115C-325.10.
Application to certain institutions.

Notwithstanding any law or regulation to the contrary,
this Part shall apply to all persons employed in teaching and related
educational classes in the schools and institutions of the Departments of
Health and Human Services, Public Instruction, Correction, or the Division of
Juvenile Justice of the Department of Public Safety, regardless of the age of
the students.

"§ 115C-325.11.Dismissal of school administrators and
teachers employed in low-performing residential schools.

(a)Notwithstanding
any other provision of this section or any other law, this section shall govern
the dismissal by the State Board of Education of teachers, principals,
assistant principals, directors, supervisors, and other licensed personnel
assigned to a residential school that the State Board has identified as low-performing
and to which the State Board has assigned an assistance team. The State Board
shall dismiss a teacher, principal, assistant principal, director, supervisor,
or other licensed personnel when the State Board receives two consecutive
evaluations that include written findings and recommendations regarding that
person's inadequate performance from the assistance team. These findings and
recommendations shall be substantial evidence of the inadequate performance of
the teacher or school administrator.

(1)The
State Board determines that the school has failed to make satisfactory
improvement after the State Board assigned an assistance team to that school.

(2)That
assistance team makes the recommendation to dismiss the teacher, principal,
assistant principal, director, supervisor, or other licensed personnel for one
or more grounds established in G.S. 115C-325.4 for dismissal or demotion
of a teacher.

Within 30 days of any dismissal under this subsection, a
teacher, principal, assistant principal, director, supervisor, or other licensed
personnel may request a hearing before a panel of three members designated by
the State Board. The State Board shall adopt procedures to ensure that due
process rights are afforded to persons recommended for dismissal under this
subsection. Decisions of the panel may be appealed on the record to the State
Board.

(c)Notwithstanding
any other provision of this section or any other law, this subsection shall
govern the dismissal by the State Board of licensed staff members who have
engaged in a remediation plan under G.S. 115C-105.38A(c) but who, after
one retest, fail to meet the general knowledge standard set by the State Board.
The failure to meet the general knowledge standard after one retest shall be
substantial evidence of the inadequate performance of the licensed staff
member.

Within 30 days of any dismissal under this subsection, a
licensed staff member may request a hearing before a panel of three members
designated by the State Board. The State Board shall adopt procedures to ensure
that due process rights are afforded to licensed staff members recommended for
dismissal under this subsection. Decisions of the panel may be appealed on the
record to the State Board.

(d)The
State Board or the superintendent of a residential school may terminate the
contract of a school administrator dismissed under this section. Nothing in
this section shall prevent the State Board from refusing to renew the contract
of any person employed in a school identified as low-performing.

(e)Neither
party to a school administrator or teacher contract is entitled to damages
under this section.

(f)The
State Board shall have the right to subpoena witnesses and documents on behalf
of any party to the proceedings under this section.

(a)Dismissal
of Principals Assigned to Low-Performing Schools With Assistance Teams. -
Notwithstanding any other provision of this Part or any other law, this section
governs the State Board's dismissal of principals assigned to low-performing
schools to which the State Board has assigned an assistance team.

(b)Authority
of State Board to Dismiss Principal. - The State Board through its designee
may, at any time, recommend the dismissal of any principal who is assigned to a
low-performing school to which an assistance team has been assigned. The State
Board through its designee shall recommend the dismissal of any principal when
the State Board receives from the assistance team assigned to that principal's
school two consecutive evaluations that include written findings and
recommendations regarding the principal's inadequate performance.

(c)Procedures
for Dismissal of Principal. -

(1)If the
State Board through its designee recommends the dismissal of a principal under
this section, the principal shall be suspended with pay pending a hearing
before a panel of three members of the State Board. The purpose of this
hearing, which shall be held within 60 days after the principal is suspended,
is to determine whether the principal shall be dismissed.

(2)The
panel shall order the dismissal of the principal if it determines from
available information, including the findings of the assistance team, that the
low performance of the school is due to the principal's inadequate performance.

(3)The
panel may order the dismissal of the principal if (i) it determines that the
school has not made satisfactory improvement after the State Board assigned an
assistance team to that school; and (ii) the assistance team makes the
recommendation to dismiss the principal for one or more grounds established in
G.S. 115C-325.4 for dismissal or demotion of a teacher.

(4)If the
State Board or its designee recommends the dismissal of a principal before the
assistance team assigned to the principal's school has evaluated that
principal, the panel may order the dismissal of the principal if the panel
determines from other available information that the low performance of the
school is due to the principal's inadequate performance.

(5)In all
hearings under this section, the burden of proof is on the principal to
establish that the factors leading to the school's low performance were not due
to the principal's inadequate performance. In all hearings under this section,
the burden of proof is on the State Board to establish that the school failed
to make satisfactory improvement after an assistance team was assigned to the
school and to establish one or more of the grounds established for dismissal or
demotion of a teacher under G.S. 115C-325.4.

(6)In all
hearings under this section, two consecutive evaluations that include written
findings and recommendations regarding that principal's inadequate performance
from the assistance team are substantial evidence of the inadequate performance
of the principal.

(7)The
State Board shall adopt procedures to ensure that due process rights are
afforded to principals under this section. Decisions of the panel may be
appealed on the record to the State Board.

(d)The
State Board of Education or a local board may terminate the contract of a
principal dismissed under this section.

(e)Neither
party to a school administrator contract is entitled to damages under this
section.

(f)The
State Board shall have the right to subpoena witnesses and documents on behalf
of any party to the proceedings under this section.

(a)Notwithstanding
any other provision of this Part or any other law, this section shall govern
the State Board's dismissal of teachers, assistant principals, directors, and
supervisors assigned to schools that the State Board has identified as low-performing
and to which the State Board has assigned an assistance team under Article 8B
of this Chapter. The State Board shall dismiss a teacher, assistant principal,
director, or supervisor when the State Board receives two consecutive
evaluations that include written findings and recommendations regarding that
person's inadequate performance from the assistance team. These findings and
recommendations shall be substantial evidence of the inadequate performance of
the teacher, assistant principal, director, or supervisor.

(b)The
State Board may dismiss a teacher, assistant principal, director, or supervisor
when:

(1)The
State Board determines that the school has failed to make satisfactory
improvement after the State Board assigned an assistance team to that school
under G.S. 115C-105.38; and

(2)That
assistance team makes the recommendation to dismiss the teacher, assistant
principal, director, or supervisor for one or more grounds established in
G.S. 115C-325.4 for dismissal or demotion for cause.

A teacher, assistant principal, director, or supervisor
may request a hearing before a panel of three members of the State Board within
30 days of any dismissal under this section. The State Board shall adopt
procedures to ensure that due process rights are afforded to persons
recommended for dismissal under this section. Decisions of the panel may be
appealed on the record to the State Board.

(c)Notwithstanding
any other provision of this Part or any other law, this section shall govern
the State Board's dismissal of licensed staff members who have engaged in a
remediation plan under G.S. 115C-105.38A(c) but who, after one retest,
fail to meet the general knowledge standard set by the State Board. The failure
to meet the general knowledge standard after one retest shall be substantial
evidence of the inadequate performance of the licensed staff member.

(d)A
licensed staff member may request a hearing before a panel of three members of
the State Board within 30 days of any dismissal under this section. The State
Board shall adopt procedures to ensure that due process rights are afforded to
licensed staff members recommended for dismissal under this section. Decisions
of the panel may be appealed on the record to the State Board.

(e)The
State Board of Education or a local board may terminate the contract of a
teacher, assistant principal, director, or supervisor dismissed under this section.

(f)Neither
party to a school administrator or teacher contract is entitled to damages
under this section.

(g)The
State Board shall have the right to subpoena witnesses and documents on behalf
of any party to the proceedings under this section."

SECTION 14.(c) G.S. 115C-45(c) reads as
rewritten:

"(c) Appeals to
Board of Education and to Superior Court. - An appeal shall lie to the local
board of education from any final administrative decision in the following
matters:

(1) The discipline
of a student under G.S. 115C-390.7, 115C-390.10, or 115C-390.11;

(2) An alleged
violation of a specified federal law, State law, State Board of Education
policy, State rule, or local board policy, including policies regarding grade
retention of students;

(3) The terms or
conditions of employment or employment status of a school employee; and

(4) Any other
decision that by statute specifically provides for a right of appeal to the
local board of education and for which there is no other statutory appeal
procedure.

As used in this subsection, the term "final
administrative decision" means a decision of a school employee from which
no further appeal to a school administrator is available.

Any person aggrieved by a decision not covered under
subdivisions (1) through (4) of this subsection shall have the right to appeal
to the superintendent and thereafter shall have the right to petition the local
board of education for a hearing, and the local board may grant a hearing regarding
any final decision of school personnel within the local school administrative
unit. The local board of education shall notify the person making the petition
of its decision whether to grant a hearing.

In all appeals to the board it is the duty of the board of
education to see that a proper notice is given to all parties concerned and
that a record of the hearing is properly entered in the records of the board
conducting the hearing.

The board of education may designate hearing panels composed
of not less than two members of the board to hear and act upon such appeals in
the name and on behalf of the board of education.

An appeal of right brought before a local board of education
under subdivision (1), (2), (3), or (4) of this subsection may be
further appealed to the superior court of the State on the grounds that the
local board's decision is in violation of constitutional provisions, is in
excess of the statutory authority or jurisdiction of the board, is made upon
unlawful procedure, is affected by other error of law, is unsupported by
substantial evidence in view of the entire record as submitted, or is arbitrary
or capricious. However, the right of a noncertified employee to appeal
decisions of a local board under subdivision (3) of this subsection shall only
apply to decisions concerning the dismissal, demotion, or suspension without
pay of the noncertified employee. A noncertified employee may request and shall
be entitled to receive written notice as to the reasons for the employee's
dismissal, demotion, or suspension without pay. The notice shall be provided to
the employee prior to any local board of education hearing on the issue. This
subsection shall not alter the employment status of a noncertified employee."

SECTION 14.(d) G.S. 115C-105.26(b)(2)
reads as rewritten:

"(2) State rules and
policies, except those pertaining to public school State salary schedules and
employee benefits for school employees, the instructional program that must be
offered under the Basic Education Program, the system of employment for public
school teachers and administrators set out in G.S. 115C-287.1 and G.S. 115C-325,in
Part 3 of Article 22 of this Chapter, health and safety codes, compulsory attendance,
the minimum lengths of the school day and year, and the Uniform Education
Reporting System."

SECTION 14.(e) G.S. 115C-105.37B(a)(2)
reads as rewritten:

"(2) Restart model, in
which the State Board of Education would authorize the local board of education
to operate the school with the same exemptions from statutes and rules as a
charter school authorized under Part 6A of Article 16 of this Chapter, or under
the management of an educational management organization that has been selected
through a rigorous review process. A school operated under this subdivision
remains under the control of the local board of education, and employees
assigned to the school are employees of the local school administrative unit
with the protections provided by G.S. 115C-325.Part 3 of Article
22 of this Chapter."

SECTION 14.(f) G.S. 115C-105.38A(d)
reads as rewritten:

"(d) Retesting; Dismissal.
- Upon completion of the remediation plan required under subsection (c) of this
section, the certified staff member shall take the general knowledge test a
second time. If the certified staff member fails to acquire a passing score on
the second test, the State Board shall begin a dismissal proceeding under G.S. 115C-325(q)(2a).G.S. 115C-325.13."

SECTION 14.(g) G.S. 115C-105.38A(f)
reads as rewritten:

"(f) Other Actions
Not Precluded. - Nothing in this section shall be construed to restrict or
postpone the following actions:

(1) The dismissal of
a principal under G.S. 115C-325(q)(1);G.S. 115C-325.12.

(2) The dismissal of
a teacher, assistant principal, director, or supervisor under G.S. 115C-325(q)(2);G.S. 115C-325.13.

(3) The dismissal or
demotion of a careeran employee for any of the grounds listed
under G.S. 115C-325(e);G.S. 115C-325.4.

(4) The nonrenewal
of a school administrator's or probationary teacher's contract of employment;
oremployment.

(a) Within 30 days
of the initial identification of a school as low-performing, whether by the
local school administrative unit under G.S. 115C-105.37(a1) or by the
State Board under G.S. 115C-105.37(a), the superintendent shall take one
of the following actions concerning the school's principal: (i) recommend to
the local board that the principal be retained in the same position, (ii)
recommend to the local board that the principal be retained in the same
position and a plan of remediation should be developed, (iii) recommend to the
local board that the principal be transferred, or (iv) proceed under G.S. 115C-325G.S. 115C-325.4
to dismiss or demote the principal. The principal may be retained in the same
position without a plan for remediation only if the principal was in that
position for no more than two years before the school is identified as low-performing.
The principal shall not be transferred to another principal position unless (i)
it is in a school classification in which the principal previously demonstrated
at least 2 years of success, (ii) there is a plan to evaluate and provide
remediation to the principal for at least one year following the transfer to
assure the principal does not impede student performance at the school to which
the principal is being transferred; and (iii) the parents of the students at
the school to which the principal is being transferred are notified. The
principal shall not be transferred to another low-performing school in the
local school administrative unit. If the superintendent intends to recommend
demotion or dismissal, the superintendent shall notify the local board. Within
15 days of (i) receiving notification that the superintendent intends to proceed
under G.S. 115C-325,G.S. 115C-325.4 or (ii) its
decision concerning the superintendent's recommendation, but no later than
September 30, the local board shall submit to the State Board a written notice
of the action taken and the basis for that action. If the State Board does not
assign an assistance team to that school or if the State Board assigns an
assistance team to that school and the superintendent proceeds under G.S. 115C-325G.S. 115C-325.4
to dismiss or demote the principal, then the State Board shall take no further
action. If the State Board assigns an assistance team to the school and the
superintendent is not proceeding under G.S. 115C-325G.S. 115C-325.4
to dismiss or demote the principal, then the State Board shall vote to accept,
reject, or modify the local board's recommendations. The State Board shall
notify the local board of its action within five days. If the State Board
rejects or modifies the local board's recommendations and does not recommend
dismissal of the principal, the State Board's notification shall include
recommended action concerning the principal's assignment or terms of
employment. Upon receipt of the State Board's notification, the local board
shall implement the State Board's recommended action concerning the principal's
assignment or terms of employment unless the local board asks the State Board
to reconsider that recommendation. The State Board shall provide an opportunity
for the local board to be heard before the State Board acts on the local
board's request for a reconsideration. The State Board shall vote to affirm or
modify its original recommended action and shall notify the local board of its
action within five days. Upon receipt of the State Board's notification, the
local board shall implement the State Board's final recommended action
concerning the principal's assignment or terms of employment. If the State
Board rejects or modifies the local board's action and recommends dismissal of
the principal, the State Board shall proceed under G.S. 115C-325(q)(1).G.S. 115C-325.12.

(b) The State Board
shall proceed under G.S. 115C-325(q)(2)G.S. 115C-325.13
for the dismissal of teachers, assistant principals, directors, and supervisors
assigned to a school identified as low-performing in accordance with G.S. 115C-325(q)(2).G.S. 115C-325.13.

…."

SECTION 14.(i) G.S. 115C-238.29F(e)(3)
reads as rewritten:

"(3) If a teacher employed
by a local school administrative unit makes a written request for a leave of
absence to teach at a charter school, the local school administrative unit
shall grant the leave for one year. For the initial year of a charter school's
operation, the local school administrative unit may require that the request
for a leave of absence be made up to 45 days before the teacher would otherwise
have to report for duty. After the initial year of a charter school's
operation, the local school administrative unit may require that the request
for a leave of absence be made up to 90 days before the teacher would otherwise
have to report for duty. A local board of education is not required to grant a
request for a leave of absence or a request to extend or renew a leave of
absence for a teacher who previously has received a leave of absence from that
school board under this subdivision. A teacher who has career status under
G.S. 115C-325 prior to receivingreceived a leave of absence to
teach at a charter school may return to a public school in the local school
administrative unit with career status at the end of the leave of
absence or upon the end of employment at the charter school if an appropriate
position is available. If an appropriate position is unavailable, the
teacher's name shall be placed on a list of available teachers and that teacher
shall have priority on all positions for which that teacher is qualified in
accordance with G.S. 115C-325(e)(2)."

SECTION 14.(j) G.S. 115C-238.68(3)
reads as rewritten:

"(3) Career status.Leave
of absence from local school administrative unit. - Employees of the
board of directors shall not be eligible for career status. If a teacher
employed by a local school administrative unit makes a written request for a
leave of absence to teach at the regional school, the local school
administrative unit shall grant the leave for one year. For the initial year of
the regional school's operation, the local school administrative unit may
require that the request for a leave of absence be made up to 45 days before
the teacher would otherwise have to report for duty. After the initial year of
the regional school's operation, the local school administrative unit may
require that the request for a leave of absence be made up to 90 days before
the teacher would otherwise have to report for duty. A local board of education
is not required to grant a request for a leave of absence or a request to
extend or renew a leave of absence for a teacher who previously has received a
leave of absence from that school board under this subdivision. A teacher who
has career status under G.S. 115C-325 prior to receivingreceived
a leave of absence to teach at the regional school may return to a public
school in the local school administrative unit with career status at the
end of the leave of absence or upon the end of employment at the regional
school if an appropriate position is available. If an appropriate position
is unavailable, the teacher's name shall be placed on a list of available
teachers in accordance with G.S. 115C-325(e)(2)."

SECTION 14.(k) G.S. 115C-276(l) reads
as rewritten:

"(l) To
Maintain Personnel Files and to Participate in Firing and Demoting of Staff. -
The superintendent shall maintain in his or her office a personnel file
for each teacher that contains complaints, commendations, or suggestions for
correction or improvement about the teacher and shall participate in the firing
and demoting of staff, as provided in G.S. 115C-325.Part 3 of
Article 22 of this Chapter."

SECTION 14.(l) G.S. 115C-285(7) reads
as rewritten:

"(7) All persons employed
as principals in the schools and institutions listed in subsection (p) of
G.S. 115C-325 G.S. 115C-325.10 shall be compensated at the
same rate as are teachers in the public schools in accordance with the salary
schedule adopted by the State Board of Education."

(a)
(1) Beginning July 1, 1995, allAll
persons employed as school administrators shall be employed pursuant to this
section.

(2)Notwithstanding
G.S. 115C-287.1(a)(1), the following school administrators shall be
employed pursuant to G.S. 115C-325:

a.School
administrators who, as of July 1, 1995, are serving in a principal or
supervisor position with career status in that position; and

b.School
administrators who, as of July 1, 1995, are serving in a principal or
supervisor position and who are eligible to achieve career status on or before
June 30, 1997.

A school administrator shall cease
to be employed pursuant to G.S. 115C-325 if the school administrator: (i)
voluntarily relinquishes career status or the opportunity to achieve career
status through promotion, resignation, or otherwise; or (ii) is dismissed or
demoted or whose contract is not renewed pursuant to G.S. 115C-325.

(3) For purposes of
this section, school administrator means a:

a. Principal;

b. Assistant
principal;

c. Supervisor;
or

d. Director,

whose major function includes the
direct or indirect supervision of teaching or of any other part of the
instructional program.

(4)Nothing
in this section shall be construed to confer career status on any assistant
principal or director, or to make an assistant principal eligible for career
status as an assistant principal or a director eligible for career status as a
director.

(b) Local boards of
education shall employ school administrators who are ineligible for career
status as provided in G.S. 115C-325(c)(3), upon the recommendation of
the superintendent. The initial contract between a school administrator and a
local board of education shall be for two to four years, ending on June 30 of
the final 12 months of the contract. In the case of a subsequent contract
between a principal or assistant principal and a local board of education, the
contract shall be for a term of four years. In the case of an initial contract
between a school administrator and a local board of education, the first year
of the contract may be for a period of less than 12 months provided the
contract becomes effective on or before September 1. A local board of education
may, with the written consent of the school administrator, extend, renew, or
offer a new school administrator's contract at any time after the first 12
months of the contract so long as the term of the new, renewed, or extended
contract does not exceed four years. Rolling annual contract renewals are not
allowed. Nothing in this section shall be construed to prohibit the filling of
an administrative position on an interim or temporary basis.

(c) The term of
employment shall be stated in a written contract that shall be entered into
between the local board of education and the school administrator. The school
administrator shall not be dismissed or demoted during the term of the contract
except for the grounds and by the procedure by which a career teacher
may be dismissed or demoted for cause as set forth in G.S. 115C-325.G.S. 115C-325.4.

(d) If a
superintendent intends to recommend to the local board of education that the
school administrator be offered a new, renewed, or extended contract, the
superintendent shall submit the recommendation to the local board for action.
The local board may approve the superintendent's recommendation or decide not
to offer the school administrator a new, renewed, or extended school
administrator's contract.

If a superintendent decides not to recommend that the local
board of education offer a new, renewed, or extended school administrator's
contract to the school administrator, the superintendent shall give the school
administrator written notice of his or her decision and the reasons for his
or her decision no later than May 1 of the final year of the contract. The
superintendent's reasons may not be arbitrary, capricious, discriminatory,
personal, or political. No action by the local board or further notice to
the school administrator shall be necessary unless the school administrator
files with the superintendent a written request, within 10 days of receipt of
the superintendent's decision, for a hearing before the local board. Failure
to file a timely request for a hearing shall result in a waiver of the right to
appeal the superintendent's decision. If a school administrator files a
timely request for a hearing, the local board shall conduct a hearing pursuant
to the provisions of G.S. 115C-45(c) and make a final decision on whether
to offer the school administrator a new, renewed, or extended school
administrator's contract.

If the local board decides not to offer the school
administrator a new, renewed, or extended school administrator's contract, the
local board shall notify the school administrator of its decision by June 1 of
the final year of the contract. A decision not to offer the school administrator
a new, renewed, or extended contract may not be for any cause that is
not arbitrary, capricious, discriminatory, personal, or political.
prohibited by State or federal law.The local board's decision not to
offer the school administrator a new, renewed, or extended school
administrator's contract is subject to judicial review in accordance with
Article 4 of Chapter 150B of the General Statutes.

(e) Repealed by
Session Laws 1995, c. 369, s. 1.

(f) If the
superintendent or the local board of education fails to notify a school
administrator by June 1 of the final year of the contract that the school
administrator will not be offered a new school administrator's contract, the
school administrator shall be entitled to 30 days of additional employment or
severance pay beyond the date the school administrator receives written notice
that a new contract will not be offered.

(g)If,
prior to appointment as a school administrator, the school administrator held
career status as a teacher in the local school administrative unit in which he
or she is employed as a school administrator, a school administrator shall
retain career status as a teacher if the school administrator is not offered a
new, renewed, or extended contract by the local board of education, unless the
school administrator voluntarily relinquished that right or is dismissed or
demoted pursuant to G.S. 115C-325.

(h) An individual
who holds a provisional assistant principal's certificate and who is employed
as an assistant principal under G.S. 115C-284(c) shall be considered a
school administrator for purposes of this section. Notwithstanding subsection
(b) of this section, a local board may enter into one-year contracts with a
school administrator who holds a provisional assistant principal's certificate.
If the school administrator held career status as a teacher in the local
school administrative unit prior to being employed as an assistant principal
and the State Board for any reason does not extend the school administrator's
provisional assistant principal's certificate, the school administrator shall
retain career status as a teacher unless the school administrator voluntarily
relinquished that right or is dismissed or demoted under G.S. 115C-325. Nothing
in this subsection or G.S. 115C-284(c) shall be construed to require a
local board to extend or renew the contract of a school administrator who holds
a provisional assistant principal's certificate."

SECTION 14.(n) G.S. 115C-288(g) reads
as rewritten:

"(g) To Report
Certain Acts to Law Enforcement and the Superintendent. - When the principal
has personal knowledge, a reasonable belief, or actual notice from school
personnel that an act has occurred on school property involving assault
resulting in serious personal injury, sexual assault, sexual offense, rape,
kidnapping, indecent liberties with a minor, assault involving the use of a
weapon, possession of a firearm in violation of the law, possession of a weapon
in violation of the law, or possession of a controlled substance in violation
of the law, the principal shall immediately report the act to the appropriate
local law enforcement agency.

A principal who willfully fails to make a report to law
enforcement required by this subsection may be subject to demotion or dismissal
pursuant to G.S. 115C-325.G.S. 115C-325.4.

Notwithstanding any other provision of law, the State Board
of Education shall not require the principal to report to law enforcement acts
in addition to those required to be reported by this subsection.

For purposes of this subsection, "school property"
shall include any public school building, bus, public school campus, grounds,
recreational area, or athletic field, in the charge of the principal.

The principal or the principal's designee shall notify the
superintendent or the superintendent's designee in writing or by electronic
mail regarding any report made to law enforcement under this subsection. This
notification shall occur by the end of the workday in which the incident
occurred when reasonably possible but not later than the end of the following
workday. The superintendent shall provide the information to the local board of
education.

Nothing in this subsection shall be interpreted to interfere
with the due process rights of school employees or the privacy rights of
students."

(a) Annual
Evaluations; Low-Performing Schools. - Local school administrative units shall
evaluate at least once each year all licensed employees assigned to a school
that has been identified as low-performing. The evaluation shall occur early
enough during the school year to provide adequate time for the development and
implementation of a mandatory improvement plan if one is recommended under
subsection (b) of this section. If the employee is a teacher as defined under G.S. 115C-325(a)(6),G.S. 115C-325.1(5),
either the principal, the assistant principal who supervises the teacher, or an
assistance team assigned under G.S. 115C-105.38 shall conduct the
evaluation. If the employee is a school administrator as defined under
G.S. 115C-287.1(a)(3), either the superintendent or the superintendent's
designee shall conduct the evaluation.

All teachers in low-performing schools who have not
attained career statusbeen employed for less than three consecutive
years shall be observed at least three times annually by the principal or
the principal's designee and at least once annually by a teacher and shall be
evaluated at least once annually by a principal. This section shall not be
construed to limit the duties and authority of an assistance team assigned to a
low-performing school under G.S. 115C-105.38.

A local board shall use the performance standards and
criteria adopted by the State Board and may adopt additional evaluation
criteria and standards. All other provisions of this section shall apply if a
local board uses an evaluation other than one adopted by the State Board.

(b) Mandatory
Improvement Plans. -

(1) Repealed by
Session Laws 2011-348, s. 2, effective July 1, 2011, and applicable to persons
recommended for dismissal or demotion on or after that date.

(1a) A mandatory improvement
plan is an instrument designed to improve a teacher's performance or the
performance of any licensed employee in a low-performing school by providing
the individual with notice of specific performance areas that have substantial
deficiencies and a set of strategies, including the specific support to be
provided to the individual, so that the individual, within a reasonable period
of time, should satisfactorily resolve such deficiencies.

(2) Repealed by
Session Laws 2011-348, s. 2, effective July 1, 2011, and applicable to persons
recommended for dismissal or demotion on or after that date.

(2a) If a licensed employee in a
low-performing school receives a rating on any standard on an evaluation that
is below proficient or otherwise represents unsatisfactory or below standard
performance in an area that the licensed employee was expected to demonstrate,
the individual or team that conducted the evaluation shall recommend to the
superintendent that (i) the employee receive a mandatory improvement plan
designed to improve the employee's performance or performance, (ii)
the superintendent recommend to the local board that the employee be
dismissed or demoted.employee's contract not be recommended for renewal,
or (iii) if the employee engaged in inappropriate conduct or performed
inadequately to such a degree that such conduct or performance causes
substantial harm to the educational environment that a proceeding for immediate
dismissal or demotion be instituted. If the individual or team that
conducted the evaluation elects not to make either any of the
above recommendations, the said individual or team shall notify the
superintendent of this decision. The superintendent shall determine whether to
develop a mandatory improvement planplan, to not recommend renewal of
the employee's contract, or to recommend a dismissal proceeding.

(3) If at any time a
licensed employee engages in inappropriate conduct or performs inadequately to
such a degree that such conduct or performance causes substantial harm to the
educational environment, and immediate dismissal or demotion is not
appropriate, then the principal may immediately institute a mandatory
improvement plan regardless of any ratings on previous evaluations. The
principal shall document the exigent reason for immediately instituting such a
plan.

(4) Mandatory
improvement plans shall be developed by the person who evaluated the licensed
employee or the employee's supervisor unless the evaluation was conducted by an
assistance team. If the evaluation was conducted by an assistance team, that
team shall develop the mandatory improvement plan in collaboration with the
employee's supervisor. Mandatory improvement plans shall be designed to be
completed within 90 instructional days or before the beginning of the next
school year. The State Board shall develop guidelines that include strategies
to assist local boards in evaluating licensed employees and developing
effective mandatory improvement plans within the time allotted under this
section. Local boards may adopt policies for the development and implementation
of mandatory improvement plans and policies for the implementation of monitored
and directed growth plans.

(c) Reassessment of
Employee in a Low-Performing School. - After the expiration of the time period
for the mandatory improvement plan under subdivision (2a) of subsection (b) of
this section, the superintendent, the superintendent's designee, or the
assistance team shall assess the performance of the employee of the low-performing
school a second time. If the superintendent, superintendent's designee, or
assistance team determines that the employee has failed to become proficient in
any of the performance standards articulated in the mandatory improvement plan
or demonstrate sufficient improvement toward such standards, the superintendent
shall recommend that the employee employee's contract not be renewed,
or that the employee be immediately dismissed or demoted under G.S. 115C-325.G.S. 115C-325.4.
The results of the second assessment shall constitute substantial evidence of
the employee's inadequate performance.

(d) State Board
Notification. - If a local board dismisses an employee of a low-performing
school for any reasonfor cause or elects to not renew an employee's
contract as a result of a superintendent's recommendation under subsection (b)
or (c) of this section,except a reduction in force under G.S. 115C-325(e)(1)l.,
it shall notify the State Board of the action, and the State Board annually
shall provide to all local boards the names of those individuals. If a local
board hires one of these individuals, within 60 days the superintendent or the
superintendent's designee shall observe the employee, develop a mandatory
improvement plan to assist the employee, and submit the plan to the State
Board. The State Board shall review the mandatory improvement plan and may
provide comments and suggestions to the superintendent. If on the next
evaluation the employee receives a rating on any standard that was identified
as an area of concern on the mandatory improvement plan that is again below
proficient or otherwise represents unsatisfactory or below standard
performance, the local board shall notify the State Board and the State Board
shall initiate a proceeding to revoke the employee's license under
G.S. 115C-296(d). If on this next evaluation the employee receives at
least a proficient rating on all of the performance standards that were
identified as areas of concern on the mandatory improvement plan, the local
board shall notify the State Board that the employee is in good standing and
the State Board shall not continue to provide the individual's name to local
boards under this subsection unless the employee is subsequently dismissed
under G.S. 115C-325 except for a reduction in force.
G.S. 115C-325.4.

…."

SECTION 14.(q) G.S. 115C-333.1 reads as
rewritten:

"§ 115C-333.1.
Evaluation of teachers in schools not identified as low-performing; mandatory
improvement plans; State Board notification upon dismissal of teachers.

(a) Annual
Evaluations. - All teachers who are assigned to schools that are not designated
as low-performing and who have not attained career statusbeen
employed for at least three consecutive years shall be observed at least
three times annually by the principal or the principal's designee and at least
once annually by a teacher and shall be evaluated at least once annually by a
principal. All teachers with career statuswho have been employed for
three or more years who are assigned to schools that are not designated as
low-performing shall be evaluated annually unless a local board adopts rules
that allow teachers with career statusemployed for three or more
years to be evaluated more or less frequently, provided that such rules are
not inconsistent with State or federal requirements. Local boards also may adopt
rules requiring the annual evaluation of nonlicensed employees. A local board
shall use the performance standards and criteria adopted by the State Board and
may adopt additional evaluation criteria and standards. All other provisions of
this section shall apply if a local board uses an evaluation other than one
adopted by the State Board.

(b) Mandatory
Improvement Plans for Teachers. - If, in an observation report or year-end
evaluation, a teacher receives a rating that is below proficient or otherwise
represents unsatisfactory or below standard performance on any standard that
the teacher was expected to demonstrate, the principal may place the teacher on
a mandatory improvement plan as defined in G.S. 115C-333(b)(1a). The
mandatory improvement plan shall be utilized only if the superintendent or
superintendent's designee determines that an individual, monitored, or directed
growth plan will not satisfactorily address the deficiencies.

If at any time a teacher engages in inappropriate conduct or
performs inadequately to such a degree that such conduct or performance causes
substantial harm to the educational environment, and immediate dismissal or
demotion is not appropriate, then the principal may immediately institute a
mandatory improvement plan regardless of any ratings on previous evaluations.
The principal shall document the exigent reason for immediately instituting
such a plan. The mandatory improvement plan shall be developed by the principal
in consultation with the teacher. The teacher shall have five instructional
days from receipt of the proposed mandatory improvement plan to request a
modification of such plan before it is implemented, and the principal shall
consider such suggested modifications before finalizing the plan. The teacher shall
have at least 60 instructional days to complete the mandatory improvement plan.
The State Board shall develop guidelines that include strategies to assist
local boards in evaluating teachers and developing effective mandatory
improvement plans. Local boards may adopt policies for the implementation of
mandatory improvement plans under this section.

(c) Observation by
a Qualified Observer. -

(1) The term
"qualified observer" as used in this section is any administrator or
teacher who is licensed by the State Board of Education and working in North
Carolina; any employee of the North Carolina Department of Public Instruction
who is trained in evaluating licensed employees; or any instructor or professor
who teaches in an accredited North Carolina school of education and holds an
educator's license.

(2) The local board
of education shall create a list of qualified observers who are employed by
that board and available to do observations of employees on mandatory
improvement plans. This list shall be limited to names of administrators and
teachers selected by the local board of education. The local board of education
shall strive to select administrators and teachers with excellent reputations
for competence and fairness.

(3) Any teacher,
other than a teacher assigned to a school designated as low-performing, who has
been placed on a mandatory improvement plan shall have a right to be observed
by a qualified observer in the area or areas of concern identified in the
mandatory improvement plan. The affected teacher and the principal shall
jointly choose the qualified observer within 20 instructional days after the
commencement of the mandatory improvement plan. If the teacher and the
principal cannot agree on a qualified observer within this time period, they
each shall designate a person from the list of qualified observers created
pursuant to subdivision (2) of this subsection, and these two designated
persons shall choose a qualified observer within five instructional days of
their designation. The qualified observer shall draft a written report
assessing the teacher in the areas of concern identified in the mandatory
improvement plan. The report shall be submitted to the principal before the end
of the mandatory improvement plan period. If a teacher or administrator from
the same local school administrative unit is selected to serve as the qualified
observer, the administration of the local school administrative unit shall
provide such qualified observer with the time necessary to conduct the
observation and prepare a report. If someone who is not employed by the same
local school administrative unit is selected to serve as the qualified
observer, the teacher who is the subject of the mandatory improvement plan will
be responsible for any expenses related to the observations and reports
prepared by the qualified observer. The qualified observer shall not unduly
disrupt the classroom when conducting an observation.

(4) No local board
of education or employee of a local board of education shall discharge,
threaten, or otherwise retaliate against another employee of the board
regarding that employee's compensation, terms, conditions, location, or
privileges of employment because of the employee's service or completion of a
report as an objective observer pursuant to this subsection, unless the
employee's report contained material information that the employee knew was
false.

(d) Reassessment of
the Teacher. - Upon completion of a mandatory improvement plan under subsection
(b) of this section, the principal shall assess the performance of the teacher
a second time. The principal shall also review and consider any report provided
by the qualified observer under subsection (c) of this section if one has been
submitted before the end of the mandatory improvement plan period. If, after
the second assessment of the teacher and consideration of any report from the
qualified observer, the superintendent or superintendent's designee determines
that the teacher has failed to become proficient in any of the performance
standards identified as deficient in the mandatory improvement plan or
demonstrate sufficient improvement toward such standards, the superintendent
may recommend that the teacher's contract not be renewed, or if the teacher has
engaged in inappropriate conduct or performed inadequately to such a degree
that such conduct or performance causes substantial harm to the educational
environment, that the teacher be immediately dismissed or demoted
under G.S. 115C-325.G.S. 115C-325.4. The results of the
second assessment produced pursuant to the terms of this subsection shall
constitute substantial evidence of the teacher's inadequate performance.

(e) Dismissal
Proceedings Without a Mandatory Improvement Plan. - The absence of a mandatory
improvement plan as described in this section shall not prohibit a
superintendent from initiating a dismissal proceeding against a teacher under
the provisions of G.S. 115C-325.G.S. 115C-325.4.
However, the superintendent shall not be entitled to the substantial evidence
provision in subsection (d) of this section if such mandatory improvement plan
is not utilized.

(f) State
Board Notification. - If a local board dismisses a teacher for cause or
elects to not renew an employee's contract as a result of a superintendent's
recommendation under subsection (d) of this section, for any reason
except a reduction in force under G.S. 115C-325(e)(1)l., it shall
notify the State Board of the action, and the State Board annually shall
provide to all local boards the names of those teachers. If a local board hires
one of these teachers, within 60 days the superintendent or the
superintendent's designee shall observe the teacher, develop a mandatory
improvement plan to assist the teacher, and submit the plan to the State Board.
The State Board shall review the mandatory improvement plan and may provide
comments and suggestions to the superintendent. If on the next evaluation the
teacher receives a rating on any standard that was an area of concern on the
mandatory improvement plan that is again below proficient or a rating that
otherwise represents unsatisfactory or below standard performance, the local
board shall notify the State Board, and the State Board shall initiate a
proceeding to revoke the teacher's license under G.S. 115C-296(d). If on
the next evaluation the teacher receives at least a proficient rating on all of
the overall performance standards that were areas of concern on the mandatory
improvement plan, the local board shall notify the State Board that the teacher
is in good standing, and the State Board shall not continue to provide the
teacher's name to local boards under this subsection unless the teacher is
subsequently dismissed under G.S. 115C-325G.S. 115C-325.4.except for a reduction in force. If, however, on this next evaluation
the teacher receives a developing rating on any standards that were areas of
concern on the mandatory improvement plan, if the local board elects to
renew the teacher's contract and the teacher shall have one more year to
bring the rating to proficient. If, by the end of this second year, the
teacher is not proficient in all standards that were areas of concern on the
mandatory improvement plan, the local board shall notify the State Board, and
the State Board shall initiate a proceeding to revoke the teacher's license
under G.S. 115C-296(d).

…."

SECTION 14.(r) G.S. 115C-335(b) reads as
rewritten:

"(b) Training. - The State
Board, in collaboration with the Board of Governors of The University of North
Carolina, shall develop programs designed to train principals and
superintendents in the proper administration of the employee evaluations
developed by the State Board. The Board of Governors shall use the professional
development programs for public school employees that are under its authority
to make this training available to all principals and superintendents at
locations that are geographically convenient to local school administrative
units. The programs shall include methods to determine whether an employee's
performance has improved student learning, the development and implementation
of appropriate professional growth and mandatory improvement plans, the process
for contract nonrenewal, and the dismissal process under G.S. 115C-325.Part
3 of Article 22 of this Chapter. The Board of Governors shall ensure that
the subject matter of the training programs is incorporated into the masters in
school administration programs offered by the constituent institutions. The
State Board, in collaboration with the Board of Governors, also shall develop
in-service programs for licensed public school employees that may be included
in a mandatory improvement plan created under G.S. 115C-333(b) or
G.S. 115C-333.1(b). The Board of Governors shall use the professional development
programs for public school employees that are under its authority to make this
training available at locations that are geographically convenient to local
school administrative units."

SECTION 14.(s) Article
23 of Chapter 115C of the General Statutes is amended by adding a new section
to read:

"§ 115C-344.
Employment benefits for exchange teachers.

An exchange teacher is a nonimmigrant alien teacher
participating in an exchange visitor program designated by the United States
Department of State pursuant to 22 C.F.R. Part 62 or by the United States
Department of Homeland Security pursuant to 8 C.F.R. Part 214.2(q). For
purposes of determining eligibility to receive employment benefits under this
Chapter, including personal leave, annual vacation leave, and sick leave, an
exchange teacher shall be considered a permanent teacher if employed with the
expectation of at least six full consecutive monthly pay periods of employment
and if employed at least 20 hours per week. An exchange teacher is not a teacher
for purposes of the Teachers' and State Employees' Retirement System of North
Carolina as provided in G.S. 135-1(25)."

SECTION 14.(t) G.S. 115C-404(b) reads
as rewritten:

"(b) Documents received
under this section shall be used only to protect the safety of or to improve
the education opportunities for the student or others. Information gained in
accordance with G.S. 7B-3100 shall not be the sole basis for a decision to
suspend or expel a student. Upon receipt of each document, the principal shall
share the document with those individuals who have (i) direct guidance,
teaching, or supervisory responsibility for the student, and (ii) a specific
need to know in order to protect the safety of the student or others. Those
individuals shall indicate in writing that they have read the document and that
they agree to maintain its confidentiality. Failure to maintain the
confidentiality of these documents as required by this section is grounds for
the dismissal of an employee who is not a career employee and is grounds for
dismissal of an employee who is a career employee, in accordance with G.S. 115C-325(e)(1)i.G.S. 115C-325.4(a)(9)."

SECTION 14.(u) G.S. 143B-146.7(b) reads
as rewritten:

"(b) At any time after the
State Board identifies a school as low-performing under this Part, the Secretary
State Board shall proceed under G.S. 115C-325(p1)G.S. 115C-325.11
for the dismissal of certificated instructional personnel assigned to that
school."

(a) Annual
Evaluations; Low-Performing Schools. - The principal shall evaluate at least
once each year all certificated licensed personnel assigned to a
participating school that has been identified as low-performing but has not
received an assistance team. The evaluation shall occur early enough during the
school year to provide adequate time for the development and implementation of
an action plan if one is recommended under subsection (b) of this section. If
the employee is a teacher as defined under G.S. 115C-325(a)(6),G.S. 115C-325.1(5),
either the principal or an assessment team assigned under G.S. 143B-146.9
shall conduct the evaluation. If the employee is a school administrator as
defined under G.S. 115C-287.1(a)(3), the Superintendent shall conduct the
evaluation.

Notwithstanding this subsection or any other law, the
principal shall observe at least three times annually, a teacher shall observe
at least once annually, and the principal shall evaluate at least once
annually, all teachers who have not attained career status.been
employed for less than three consecutive years. All other employees who
have been employed for three or more years and are defined as teachers
under G.S. 115C-325(a)(6)G.S. 115C-325.1(5) who are
assigned to participating schools that are not designated as low-performing
shall be evaluated annually unless the Secretary adopts rules that allow specified
categories of teachers with career statusthree or more years of
employment to be evaluated more or less frequently. The Secretary also may
adopt rules requiring the annual evaluation of noncertificated nonlicensed
personnel. This section shall not be construed to limit the duties and
authority of an assistance team assigned to a low-performing school.

The Secretary shall use the State Board's performance
standards and criteria unless the Secretary develops an alternative evaluation
that is properly validated and that includes standards and criteria similar to
those adopted by the State Board. All other provisions of this section shall
apply if an evaluation is used other than one adopted by the State Board.

(b) Action Plans. -
If a certificated licensed employee in a participating school
that has been identified as low-performing receives an unsatisfactory or below
standard rating on any function of the evaluation that is related to the
employee's instructional duties, the individual or team that conducted the
evaluation shall recommend to the principal that: (i) the employee receive an
action plan designed to improve the employee's performance; (ii) the
employee's contract not be recommended for renewal, or (iii) if the employee
engages in inappropriate conduct or performs inadequately to such a degree that
such conduct or performance causes substantial harm to the educational
environment that a proceeding for immediate dismissal or demotion be
instituted.or (ii) the principal recommend to the Secretary that the
employee be dismissed or demoted. The principal shall determine whether to
develop an action planplan, tonot recommend renewal of the
employee's contract, or to recommend a dismissal proceeding. The person who
evaluated the employee or the employee's supervisor shall develop the action
plan unless an assistance team or assessment team conducted the evaluation. If
an assistance team or assessment team conducted the evaluation, that team shall
develop the action plan in collaboration with the employee's supervisor. Action
plans shall be designed to be completed within 90 instructional days or before
the beginning of the next school year. The State Board, in consultation with
the Secretary, shall develop guidelines that include strategies to assist in
evaluating certificated licensed personnel and developing
effective action plans within the time allotted under this section. The
Secretary may adopt policies for the development and implementation of action
plans or professional development plans for personnel who do not require action
plans under this section.

(c) Reevaluation. -
Upon completion of an action plan under subsection (b) of this section, the
principal or the assessment team shall evaluate the employee a second time. If
on the second evaluation the employee receives one unsatisfactory or more than
one below standard rating on any function that is related to the employee's
instructional duties, the principal shall recommend that the employee's
contract not be renewed, or if the employee engages in inappropriate conduct or
performs inadequately to such a degree that such conduct or performance causes
substantial harm to the educational environment, that the employee be
dismissed or demoted under G.S. 115C-325.G.S. 115C-325.4.
The results of the second evaluation shall constitute substantial evidence of
the employee's inadequate performance.

(d) State Board
Notification. - If the Secretary dismisses an employee for cause or elects
to not renew an employee's contract as a result of a superintendent's
recommendation under subsection (b) or (c) of this section, any reason
except a reduction in force under G.S. 115C-325(e)(1)l., the Secretary
shall notify the State Board of the action, and the State Board annually shall
provide to all local boards of education the names of those individuals. If a
local board hires one of these individuals, that local board shall proceed
under G.S. 115C-333(d).

…."

SECTION 14.(w) Notwithstanding the
requirements for terms of contracts in G.S. 115C-325.3, for the 2012-2013
school year all teachers shall be employed on a contract for a term of one
year. This section becomes effective July 1, 2012, and applies to all
school employees employed on or after that date.

PART XV. ELIMINATION OF PUBLIC FINANCING FOR SUPERINTENDENT
OF PUBLIC INSTRUCTION

The purpose of this Article is to ensure the vitality and fairness
of democratic elections in North Carolina to the end that any eligible citizen
of this State can realistically choose to seek and run for public office. It is
also the purpose of this Article to protect the constitutional rights of voters
and candidates from the detrimental effects of increasingly large amounts of
money being raised and spent in North Carolina to influence the outcome of
elections. It is essential to the public interest that the potential for
corruption or the appearance of corruption is minimized and that the equal and
meaningful participation of all citizens in the democratic process is ensured.
Accordingly, this Article establishes the North Carolina Voter-Owned Elections
Fund as an alternative source of campaign financing for candidates who obtain a
sufficient number of qualifying contributions from registered voters and who
voluntarily accept strict fund-raising and spending limits. This Article is
available to candidates for the Council of State offices of Auditor,
Superintendent of Public Instruction,Auditor and Commissioner of
Insurance in elections to be held in 2008 and thereafter."

SECTION 15.(b) G.S. 163-278.96(12)
reads as rewritten:

"(12) Office. - The Council of State
offices of Auditor, Superintendent of Public Instruction, Auditor and
Commissioner of Insurance."

SECTION 15.(c) Within five business days of
the effective day of this act, the State Board of Elections shall notify any
individual who is a candidate for Superintendent of Public Instruction and who
has filed a declaration of intent to participate in the program for public
financing through the North Carolina Voter-Owned Elections Fund that the
candidate is no longer eligible to participate in the program.

SECTION 15.(d) This section is effective
when it becomes law and applies to elections held on or after that date.

PART XVI. EFFECTIVE DATE

SECTION 16. Except as otherwise provided,
this act is effective when it becomes law.